Because Inventory Is Carried at Each Stage in the Supply

question 67

True/False

Because inventory is carried at each stage in the supply chain, and because inventory ties up money, it has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory.

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Definitions:

Complements

Goods or services that are used together, where the use of one increases the value or demand for the other, like smartphones and data plans.

Substitutes

Goods or services that can be used in place of each other to satisfy consumer preferences or needs.

Substitute Product

A good or service that can be used in place of another to satisfy similar needs or desires.

Complements

Products or services that are used together, where the consumption or use of one increases the demand for the other.