A company that has consistently achieved a high level of on-time delivery performance has decided to reduce its inventory level significantly. Which of the following outcomes is the most likely effect of that decision on the company's on time delivery performance?

Question

Quizplus · Accepted Answer

If the company significantly reduces its inventory level, there may be disruptions in the supply chain which could cause delays in delivery performance. However, over time the company may adjust to the new inventory level and stabilize at a lower but consistent delivery performance level.

A Company That Has Consistently Achieved a High Level of On-Time