APICS CSCP Exam With Confidence Using Practice Dumps

When determining inventory levels for each product, especially for a company focusing on product differentiation with unique features targeted at various customer groups, the first activity should be identifying and documenting each market segment's needs. Understanding specific customer requirements and demand patterns is crucial for setting appropriate inventory levels that align with market expectations. Planning equivalent inventory levels, setting price points, and determining inventory levels at retail outlets are subsequent steps that depend on the initial assessment of market needs.References: Kotler, P., & Keller, K. L. (2016). "Marketing Management."

Drop shipping is a fulfillment method where retailers do not keep products in stock but instead transfer customer orders and shipment details directly to the supplier or manufacturer, who then ships the goods directly to the customer. Here’s how it works step-by-step:

• Customer Order: A customer places an order with the retailer.
• Order Transfer: The retailer forwards the order and shipping details to the supplier or manufacturer.
• Supplier Fulfillment: The supplier or manufacturer prepares the order and ships it directly to the customer.
• Inventory Management: The retailer does not handle or store inventory, reducing warehousing and logistics costs.
• Benefits: This method can reduce inventory holding costs, minimize handling time, and improve cash flow for the retailer, as they do not pay for inventory until it is sold.

References

• Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.
• Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain Logistics Management.

In an advanced planning system (APS), the demand planning module feeds the master planning module. Demand planning involves forecasting customer demand and creating a demand plan that considers historical data, market trends, and other factors. This information is crucial for the master planning module, which uses it to develop production, procurement, and inventory plans to meet the forecasted demand efficiently.

• Purchasing planning focuses on procurement activities and is influenced by the master plan.
• Distribution planning deals with the logistics of distributing products and relies on the master plan.
• Fulfillment planning involves ensuring customer orders are fulfilled, also based on the master plan.

References:

• Stadtler, H., Kilger, C., & Meyr, H. (2014). "Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies."
• Chopra, S., & Meindl, P. (2016). "Supply Chain Management: Strategy, Planning, and Operation."