Praxis Technologies' supplier is in a country that was recently affected by a natural disaster, with the result that production was completely halted for several weeks. However, their competitor, Burnham, was much more adversely affected because of the fact that, unlike Praxis, Burnham uses a system in which they receive supplies only as they need them. What was Praxis able to do in response to the crisis that Burnham was not?
A)They were able to use their buffer stock of inventory to fulfill back orders until production resumed.
B)They were able to use CRM technology to let their customers know that orders would be delayed.
C)They were able to quickly farm out production of their stock to several smaller, local factories.
D)They were able to hire a factory manufacturing generic components to produce them using the Praxis brand.

Question

Quizplus · Accepted Answer

Praxis was able to use their buffer stock of inventory to fulfill back orders until production resumed, unlike Burnham, which relied on a just-in-time inventory system and was more affected by the supply disruption.

Praxis Technologies' Supplier Is in a Country That Was Recently