A clothing wholesaler buys most of its inventory from manufacturers in the Caribbean. In the event a hurricane demolishes the manufacturing facility of one of its principal suppliers, what should the company have?

Question

Quizplus · Accepted Answer

Contingency planning involves preparing for unexpected events or situations that may disrupt normal business operations. In this case, if the supplier's facility is destroyed by a hurricane, the clothing wholesaler may face an inventory shortage and may need to find alternative sources of inventory. A contingency plan would outline the steps the company should take in such a situation, such as identifying alternative suppliers, adjusting inventory levels, and communicating with customers about potential delays or disruptions.

A Clothing Wholesaler Buys Most of Its Inventory from Manufacturers