The most cost-effective way to increase the velocity of goods in a supply chain is to:
The most cost-effective way to increase the velocity of goods in a supply chain is to:
Improving the way the supply chain handles goods that are not in motion is the most cost-effective way to increase the velocity of goods. This approach focuses on optimizing internal processes, eliminating bottlenecks, reducing idle times, and enhancing overall efficiency within the supply chain. By streamlining these processes, goods spend less time in storage or waiting to be processed, which speeds up their movement through the supply chain without incurring significant additional costs.
A is the correct answer. This option focuses on optimizing internal processes and eliminating bottlenecks and unnecessary waiting times, rather than incurring additional costs by switching to a faster mode of transport (Option B) or establishing warehouses near major retail outlets (Option C). The latter could increase the speed of goods, but often at a significantly higher cost.
Should be B. CSCP 5.0 page 8-32 stated.. "Relying on more rapid modes of transportation"
Reducing the time in which inventory is not moving (idle, queue, wait time, etc.) such as by using Just-in-Time delivery and lean manufacturing (The less time inventory spends at rest, the less likely it is to suffer damage or spoilage. Increased velocity reduces the expenses involved in warehousing inventory.)
Improving the way the supply chain handles goods that are not in motion, such as reducing processing time, optimizing storage and handling methods, and streamlining administrative tasks, can help increase the velocity of goods without incurring additional transportation costs or establishing new facilities. This approach focuses on eliminating bottlenecks, reducing idle time, and enhancing overall efficiency within the supply chain, resulting in faster movement and reduced lead times.