Increased uncertainty and variability in a supply chain typically results in
A)faster deliveries.
B)more accurate order fulfillment.
C)larger inventories.
D)lower costs.

Question

Quizplus · Accepted Answer

Increased uncertainty and variability in a supply chain leads to larger inventories as companies tend to hold larger safety stocks to hedge against the risks of potential stockouts or delays in shipments. This increases the costs of holding inventories, which is a major cost component in supply chain management.

Increased Uncertainty and Variability in a Supply Chain Typically Results