Variations create uncertainty, thereby causing inefficiencies in a supply chain.

Question

Quizplus · Accepted Answer

Variations in supply and demand can create uncertainty in a supply chain, leading to inefficiencies such as excess inventory, stockouts, and increased lead times. These inefficiencies can result in increased costs and reduced customer satisfaction. Therefore, it is important for supply chain managers to reduce variations and increase visibility and transparency throughout the supply chain to improve overall efficiency.

Variations Create Uncertainty, Thereby Causing Inefficiencies in a Supply Chain