Which of the following might a company try to do to reduce the total amount of safety stock it holds?
A)Implement and use ABC analysis of inventory items.
B)Attempt to reduce variation in supplier lead times.
C)Implement demand management approaches.
D)All of these selections.

Question

Quizplus · Accepted Answer

All of these selections can help a company reduce the total amount of safety stock it holds. ABC analysis of inventory items can help identify which items require the most safety stock, so the company can focus on reducing safety stock for lower-priority items. Reducing variation in supplier lead times can help the company better predict when inventory will arrive, reducing the need for safety stock. Demand management approaches can help the company better predict how much inventory it will need, reducing the need for safety stock.

Which of the Following Might a Company Try to Do