To reduce inventory variability in the supply chain and to better match demand with supply at various stages in the supply chain,which of the following two practices are effective?
A)Communication
B)Longer lead-times
C)Collaboration
D)Quantity discounts

Question

Quizplus · Accepted Answer

Communication and collaboration are key practices for reducing inventory variability in the supply chain. Effective communication among supply chain partners ensures that demand forecasts and inventory levels are shared accurately and timely, allowing for better coordination. Collaboration involves working together to plan and execute supply chain activities, which helps in aligning supply with demand more effectively, thus reducing inventory variability.

To Reduce Inventory Variability in the Supply Chain and to Better