As the length and complexity of a supply chain increases, a firm's inventory levels:
A) increase.
B) decrease.
C) stay the same.
D) can't be determined.

Question

Quizplus · Accepted Answer

As the length and complexity of a supply chain increases, it becomes more difficult for firms to accurately predict demand and lead times, resulting in an increase in safety stock and overall inventory levels to ensure that they can fulfill orders in a timely manner.

As the Length and Complexity of a Supply Chain Increases