Asked by
Danny Bernal
on Oct 18, 2024Verified
A shrewd supply chain manager would aggregate only safety inventory and use an inexpensive mode of transportation for replenishing cycle inventory if she is dealing with a
A) high-value product and high demand.
B) high-value product and low demand.
C) low-value product and high demand.
D) low-value product and low demand.
Safety Inventory
Extra inventory held as a buffer against demand variability and supply chain disruptions to prevent stockouts.
Cycle Inventory
The portion of inventory that companies hold to facilitate smooth production and sales operations, fluctuating based on production cycle needs.
Low-Value Product
Products that have a low price point or perceived economic value to the consumer, often resulting in slim profit margins.
- Examine the significance of inventory management in determining transportation choices.
- Investigate the balancing acts required in making choices regarding transportation and stock control.
Verified Answer
AG
Learning Objectives
- Examine the significance of inventory management in determining transportation choices.
- Investigate the balancing acts required in making choices regarding transportation and stock control.