A costly, stopgap approach to risk management is
A) Increasing safety stocks and forward buying
B) Identifying backup suppliers and logistics services
C) Diversifying the supply base
D) Utilizing a supply chain IT system

Question

Quizplus · Accepted Answer

Increasing safety stocks and forward buying can be a costly approach to risk management because it involves holding excess inventory which ties up working capital and incurs storage costs. It is a temporary solution and does not address the root cause of the supply chain risk.

A Costly, Stopgap Approach to Risk Management Is