Certified Supply Chain Professional (CSCP) Practice Exam

How does the traditional relationship between suppliers and customers typically function?

1. Customers determine stock based on sales data

2. Customers stock their shelves with goods bought from suppliers

3. Suppliers stock shelves directly at customer locations

4. Suppliers make inventory decisions independently of customers

The correct answer is: Customers stock their shelves with goods bought from suppliers

In traditional supply chain relationships, the dynamic typically involves customers purchasing inventory from suppliers to stock their shelves. This reflects the common practice where customers decide the quantity of goods they require based on their anticipated demand. The relationship is transactional, with suppliers providing the necessary products to replenish customer inventory. This model relies on the understanding that the supplier's role is to deliver products efficiently to fulfill the customer's purchasing needs. Consequently, customers often determine their stock levels based on their sales forecast and market demand, leading to effective replenishment of their inventory. While options might suggest varying levels of supplier involvement in inventory management, the central point in traditional relationships remains that the customers actively manage their stock based on their purchasing decisions, underscoring the fundamental flow of information and goods from suppliers to customers in the supply chain.