In studying positioning of inventory in supply chains, which, if any, of the following is most appropriate? (Select all that apply.)
A) As order decoupling point moves towards source, inventory investment goes down.
B) As order decoupling point moves towards the source, customer lead time gets longer.
C) As order decoupling point moves towards the source, inventory investment increases.
D) As order decoupling point moves towards the source, customer lead time is unchanged.

Question

Quizplus · Accepted Answer

As the order decoupling point moves towards the source, inventory investment typically decreases because less inventory is held closer to the customer. Additionally, customer lead time tends to increase because products are made to order rather than being readily available from stock.

In Studying Positioning of Inventory in Supply Chains, Which, If