The skillful supply chain manager declared she would not only disaggregate cycle inventory,but she would also aggregate safety inventory and use an inexpensive mode of transportation for replenishing cycle inventory and fast mode when using safety inventory for her product that had
A)high value and high demand.
B)high value and low demand.
C)low value and high demand.
D)low value and low demand.

Question

Quizplus · Accepted Answer

The correct answer is A because the product has high value and high demand, so it is important to have a high level of safety inventory to protect against stockouts. The company can use an inexpensive mode of transportation for replenishing cycle inventory because the product is not time-sensitive.

The Skillful Supply Chain Manager Declared She Would Not Only