It Is Recommended That a Firm in a Responsive Supply

question 16

Multiple Choice

It is recommended that a firm in a responsive supply chain have

• A) standardized product.
• B) flexible quality policy.
• C) volume flexibility.
• D) low- capacity cushion.

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Definitions:

Reorder Point

The inventory level at which action is taken to replenish a particular stock item, ensuring adequate supply while minimizing holding costs.

Carrying Cost

An expense related to holding inventory, including storage, insurance, and obsolescence costs.

Lead Time

The total time taken from the initiation to the completion of a production process or delivery of a service.

Value Chain

The full range of activities that businesses go through to bring a product or service from conception to delivery to the end consumer.