Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?
A) Safety stock
B) Continuous replenishment
C) Just-in-time strategies
D) Demand planning
E) Bullwhip effect

Question

Quizplus · Accepted Answer

Safety stock is a traditional solution that manufacturers use to deal with uncertainties in the supply chain. It involves holding additional inventory to ensure that demand variations, production problems, and supply disruptions do not lead to service or production disruptions. Safety stock provides a buffer against unexpected events and helps to ensure that the required inventory levels for production and delivery are maintained. Other traditional solutions listed, including continuous replenishment, just-in-time strategy, and demand planning, do not specifically address uncertainties in the supply chain. The bullwhip effect is a consequence of demand amplification in a supply chain and not a traditional solution to dealing with uncertainties.

Which of the Following Traditional Solutions Enables Manufacturers to Deal