Under what circumstances is a supply discrepancy report (SDR) required?

• A. When inventory is low
• B. Incorrect material, unacceptable substitutes, or duplicate shipments
• C. Only for defective items
• D. When shipment arrives late

Answer: (B)

A supply discrepancy report (SDR) is required primarily when there are issues with the delivered goods that do not meet the expected criteria or specifications. This includes instances of receiving incorrect materials, unacceptable substitutes for ordered items, or duplicate shipments. Each of these situations indicates a significant deviation from what was originally intended in the procurement process, prompting the need for documentation and formal reporting through an SDR to ensure proper record-keeping and resolution of the discrepancies.

In contrast, reporting inventory as low or waiting for a late shipment does not typically necessitate an SDR, as these issues may not directly reflect errors in the quality or correctness of the received items. Similarly, defects in items alone may not warrant an SDR unless they also involve incorrect materials or substitutes; defects alone generally would be addressed through other quality control measures rather than a reporting mechanism like an SDR.