The tailored strategy "Focus on low-cost,decentralized capacity for predictable demand" follows which risk mitigation strategy?
A)Get redundant suppliers.
B)Increase capacity.
C)Increase responsiveness.
D)Increase inventory.

Question

Quizplus · Accepted Answer

The strategy of focusing on low-cost, decentralized capacity for predictable demand is aimed at increasing the capacity to meet the demand in a cost-effective manner, thereby mitigating the risk of capacity shortages or production stoppages. This strategy does not involve getting redundant suppliers or increasing inventory levels, nor does it necessarily improve responsiveness to sudden changes in demand.

The Tailored Strategy "Focus on Low-Cost,decentralized Capacity for Predictable Demand