Operating with Low Levels of Inventory Helps a Supply Chain

question 66

True/False

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.

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Definitions:

Corrective Action

Measures taken to identify, eliminate, and prevent recurrence of undesirable performances or non-conformities in a process or system.

Feedback Control

A process where outputs are monitored and used to make adjustments to inputs or processes to achieve desired outcomes.

Quality

The degree to which a product or service meets or exceeds customer expectations.

Variety

The presence of multiple different elements or options within a certain context, providing a range of choices.