When mistakes occur in the supply chain, which of the following things might happen?
A) More safety stock must be held
B) Cost may increase due to expedited deliveries
C) Customer service levels drop
D) All of the above

Question

Quizplus · Accepted Answer

When mistakes occur in the supply chain, there can be several consequences. Holding more safety stock may be necessary to avoid stockouts and ensure continuity of supply, which can increase inventory carrying costs. Expedited deliveries may be required to compensate for delays caused by mistakes, which can increase transportation costs. Finally, mistakes can also lead to a drop in customer service levels if orders are delayed or incorrect, which can damage customer relationships and lead to lost sales. Therefore, all of the above (A, B, and C) are potential consequences of supply chain mistakes.

When Mistakes Occur in the Supply Chain, Which of the Following