Using multiple suppliers and suppliers that have flexibility in capacity to respond to demand changes is a mitigation strategy for ______.

Question

Quizplus · Accepted Answer

Using multiple suppliers and suppliers with flexibility in capacity can help mitigate demand risk, as it allows the company to respond to changes in demand by shifting orders to different suppliers or increasing orders with flexible suppliers. This helps prevent stockouts or excess inventory due to unexpected changes in demand.

Using Multiple Suppliers and Suppliers That Have Flexibility in Capacity