Exam CSCP topic 1 question 101 discussion

The correct answer should be D. Manufacturing throughput has nothing to do with demand variability. Sharing demand information can help speed up more accurate decision making to help reduce variability throughout the chain

Concur that answer is D. B, increasing safety stocks is based on the premise that demand keeps going upward, while here it says "variability", meaning that demand could go downward. So increasing safety stock levels might lead to extra handling/carrying costs.

Increasing demand visibility involves sharing demand information and forecasts with all partners in the distribution network. This allows for better coordination, planning, and responsiveness to changes in demand patterns.

In a multitiered distribution network, demand variability can create challenges in managing inventory levels and meeting customer service levels. When there is high demand variability for a mature product that had experienced stable demand for several years, increasing distribution safety stock targets can be an appropriate way to address the variability of demand. Manufacturing throughput is tackling the challenge at the wrong point in the supply chain.