Certified Supply Chain Professional (CSCP) Practice Exam

What is one of the benefits of implementing a hybrid DRP system?

1. It eliminates the need for safety stock

2. It allows for larger but less frequent orders

3. It leads to better customer service and lower inventory costs

4. It relies solely on historical demand patterns

The correct answer is: It leads to better customer service and lower inventory costs

Implementing a hybrid Distribution Resource Planning (DRP) system can significantly enhance customer service while simultaneously reducing inventory costs. The hybrid approach combines aspects of both push and pull strategies, allowing businesses to respond more flexibly to customer demand. By integrating forecasting with real-time data, organizations can accurately predict demand fluctuations and adjust their inventory levels accordingly. This capability allows for more efficient use of resources, ensuring that products are available when customers need them, which directly improves service levels. Moreover, a well-implemented hybrid DRP system can help maintain lower inventory levels, reducing holding costs and the risk of obsolescence. This balance between having enough stock to meet customer demands while minimizing excess inventory creates a more responsive and cost-effective supply chain. In contrast, other options may present misconceptions about the nature and benefits of a hybrid DRP system. For example, while eliminating the need for safety stock might sound appealing, in practice, a certain amount of safety stock is often necessary to buffer against uncertainties in demand and supply. Additionally, larger but less frequent orders might not enhance customer service; rather, they could lead to delays in fulfilling customer needs. Finally, relying solely on historical demand patterns overlooks the benefits of real-time data and customer insights that are crucial for effective supply