ITPEC IP October 2023 Question 84
ITPEC IP October 2023 — Question 84 of 100
SCM shares and coordinates production, inventory, logistics, and sales information across departments and companies to optimize the end-to-end supply chain. Better visibility aligns supply with demand, reduces excess inventory and lead time, avoids shortages, lowers total cost, and improves customer service.
Answer (b)
Why not others:
- (a) describes capability or partner analysis rather than supply-chain operation
- (c) describes value-chain analysis, which identifies where customer value is created
- (d) describes product-mix optimization under constraints
Key rule: SCM optimizes flows of materials, products, information, and funds from suppliers through producers and distributors to customers.
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