As a result of the terrorist attacks of September 11, 2001, many firms have employed a wide range of tactics to ensure continued flow of inventory in the face of government steps to curb terrorism. Which of the following is an inventory sourcing strategy response (as opposed to an inventory management response, or a transportation response)?
A)Carrying more inventory on-hand.
B)Minimize cross-border exposure from suppliers.
C)Shifting to air cargo shipments instead of co-habitation of products and passengers on commercial air flights.
D)Increasing the on-hand supply of critical parts.

Question

Quizplus · Accepted Answer

Minimizing cross-border exposure from suppliers is an inventory sourcing strategy response as it involves finding local or domestic suppliers to reduce the risk of border closures or delays due to security measures. A is an inventory management response, D is an inventory sourcing and management response, and C is a transportation response as it relates to a change in transportation mode.

As a Result of the Terrorist Attacks of September 11