In a supply chain for products with low profit margins, the focus is likely to fall on:
A) The increase in variety
B) The number of deliveries to end customers
C) The reduction of inventory
D) The reduction of suppliers

Question

Quizplus · Accepted Answer

In a supply chain for products with low profit margins, reducing inventory is important in order to reduce costs and increase efficiency. This is because holding excess inventory can tie up capital and increase storage and handling costs. Therefore, the focus is likely to fall on reducing inventory levels wherever possible. Options (A) and (B) could potentially increase costs without adding significant value, while (D) reducing suppliers may negatively impact the ability to obtain necessary components.

In a Supply Chain for Products with Low Profit Margins