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APICS Exam CSCP Topic 3 Question 86 Discussion

Actual exam question for APICS's CSCP exam
Question #: 86
Topic #: 3
[All CSCP Questions]

Which of the following methods is used to minimize the bullwhip effect?

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Suggested Answer: C

According to the APICS CSCP - Supply Chain Management Certification, outsourcing is the process of transferring some or all of the activities or functions of a firm to an external provider or supplier. Outsourcing can have many benefits, such as reducing capital investment, achieving economies of scale, increasing flexibility, and accessing specialized skills or technologies. However, outsourcing also involves some risks, such as conflicting objectives between the buyer and the supplier, loss of control over quality or delivery, loss of core competencies or competitive advantage, increased dependency or vulnerability, or ethical or social issues.


Contribute your Thoughts:

Linn
6 days ago
I'm not sure about that. Reducing the number of SKUs seems like it would be a more effective way to minimize the bullwhip effect. Less variety means less potential for distortion.
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Domingo
8 days ago
Reducing lead time is definitely the way to go. The faster I can get my products, the less time there is for the bullwhip effect to kick in.
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Bernardine
12 days ago
I believe C) Reducing lead time can also help minimize the bullwhip effect by improving responsiveness in the supply chain.
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Ollie
14 days ago
I agree with Bernardo. Having fewer SKUs can help reduce the bullwhip effect by simplifying the supply chain.
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Bernardo
15 days ago
I think the answer is B) Reducing the number of stock keeping units (SKUs).
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