When faced with predictable variability, a company's goal is to respond in a manner that maximizes profitability. A firm must choose how to handle this by managing the supply using capacity, inventory, subcontracting, and backlogs and managing the demand using __________________.
A)Short-term price and trade promotions
B)Long-term discounts and effective marketing
C)Short-term discounts and long-term sales promotions
D)None of the above.

Question

Quizplus · Accepted Answer

If faced with predictable variability, a company's goal is to respond in a manner that maximizes profitability. A firm must choose how to handle it by managing supply using capacity, inventory, subcontracting and backlogs and managing demand using short-term price discounts and trade promotions. The use of these tools enables the supply chain to greatly increase its profitability because it is able to meet supply and demand in a much more coordinated fashion.

When Faced with Predictable Variability, a Company's Goal Is to Respond