Replenishment orders in multi-echelon supply chains should be
A)synchronized to increase cycle inventory and order costs.
B)synchronized to facilitate supplier evaluation and selection.
C)synchronized to keep cycle inventory and order costs low.
D)separated to increase cycle inventory and order costs.

Question

Quizplus · Accepted Answer

Synchronizing replenishment orders in multi-echelon supply chains helps to keep cycle inventory and order costs low. This is because synchronization helps to optimize inventory levels and reduce the need for safety stock, which in turn reduces the overall cost of holding inventory. Keeping cycle inventory and order costs low is an important goal in supply chain management, as it helps to improve profitability and competitiveness.

Replenishment Orders in Multi-Echelon Supply Chains Should Be