APICS CSCP Exam With Confidence Using Practice Dumps

Direct shipment distribution involves shipping products directly from the manufacturer to the end customer, bypassing intermediate storage or handling facilities such as distribution centers or warehouses. This approach reduces lead times by eliminating the additional steps and delays associated with intermediate storage and handling. Direct shipment ensures that products reach customers faster, improving delivery speed and customer satisfaction. Additionally, it can reduce handling costs and minimize the risk of damage or loss during transit.References:

• "The Handbook of Logistics and Distribution Management" by Alan Rushton, Phil Croucher, and Peter Baker
• "Logistics & Supply Chain Management" by Martin Christopher

When lot size increases, the number of units ordered in each batch grows, leading to several outcomes:

• Inventory Levels: As lot size increases, more inventory is held at any given time. This results in higher average inventory levels.
• Carrying Costs: Inventory carrying costs include storage, insurance, handling, and obsolescence. With more inventory on hand due to larger lot sizes, these costs increase proportionally.
• Setup Costs: While larger lot sizes can reduce the frequency of setups, thereby reducing setup costs, the increase in carrying costs due to holding more inventory typically outweighs the setup cost savings.
• Operating Expenses and Total Profit: Operating expenses might not necessarily increase with lot size, and total profit is not directly influenced by lot size alone but by a combination of factors like sales, costs, and efficiency.

Therefore, increasing lot size primarily leads to an increase in inventory carrying costs.

References

• Silver, Edward A., David F. Pyke, and Rein Peterson. "Inventory Management and Production Planning and Scheduling." Wiley.
• Chopra, Sunil, and Peter Meindl. "Supply Chain Management: Strategy, Planning, and Operation." Pearson.

Qualitative extrinsic data are data that are obtained from external sources and are not based on numerical measurements, but rather on opinions, judgments, or perceptions. Qualitative extrinsic data are used with qualitative forecasting techniques, such as the Delphi method. The Delphi method is a technique that involves a panel of experts who provide their opinions on a topic through a series of questionnaires. The results of each questionnaire are summarized and fed back to the panel, allowing them to revise their opinions based on the feedback. The process is repeated until a consensus is reached or the opinions stabilize . The Delphi method is useful for forecasting long-term trends, new product demand, technological changes, or social and economic issues.