By identifying and eliminating the causes of uncertainty and risk in the supply chain,the supply manager may be able to reduce the needed inventories and therefore buy a lower quantity.

Question

Quizplus · Accepted Answer

By minimizing uncertainty and risk in the supply chain, the supply manager can have greater confidence in the availability and delivery times of goods, leading to a possible reduction in required inventory levels. This can ultimately result in buying a lower quantity while still meeting customer demand.

By Identifying and Eliminating the Causes of Uncertainty and Risk