It is recommended that a firm in the higher echelon of an efficient supply chain have

Question

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Having low inventory investments is recommended for a firm in the higher echelon of an efficient supply chain because it allows for faster turnover of goods and reduces the risk of excess inventory. This also helps to increase cash flow and minimize the storage and handling costs associated with inventory management. Delivery by air (option A) may be beneficial for fast delivery times but it can also be expensive and may not be necessary in all situations. High-capacity cushions (option B) and low-capacity utilization (option D) are not necessarily indicative of a more efficient supply chain as they could lead to excess capacity and increased costs.

It Is Recommended That a Firm in the Higher Echelon