The most common solution to supply chain uncertainties is to build inventories or __________ as insurance.
A)safety stock
B)stockouts
C)continuous replenishment
D)restocking

Question

Quizplus · Accepted Answer

Building safety stock allows for extra inventory to be held in case of unexpected demand or supply chain disruptions. It helps to mitigate the impact of uncertainties on the supply chain by providing a buffer to cover any unexpected events. Stockouts (B) are not a solution to uncertainties as they are a result of inadequate inventory management. Continuous replenishment (C) and restocking (D) are strategies for maintaining inventory levels, but do not directly address supply chain uncertainties.

The Most Common Solution to Supply Chain Uncertainties Is to Build