To manage supply uncertainties, companies are

Question

Quizplus · Accepted Answer

Keeping reserves of stock or capacity in supply, assembly, and distribution networks is the best way to manage supply uncertainties. This approach involves maintaining inventory buffers and keeping excess capacity to deal with potential supply disruptions. It allows companies to continue their operations even if their suppliers face problems. Requiring reserve capacity from single suppliers or minimizing shipping times may not always be feasible, while fighting piracy and hijacking addresses a different set of risks.

To Manage Supply Uncertainties, Companies Are