Operating with low levels of inventory helps a supply chain facing uncertainty because there is that much less product to flush out of the system before filling today's order.

Question

Quizplus · Accepted Answer

Operating with low levels of inventory actually increases vulnerability in a supply chain facing uncertainty, as it reduces the buffer against fluctuations in demand or supply, potentially leading to stockouts and inability to fulfill orders promptly.

Operating with Low Levels of Inventory Helps a Supply Chain