ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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act as a buffer against
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act as a inbound against
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act as a outbound against
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None of the above
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Detailed explanation-1: -Perhaps the most fundamental role that inventory plays in supply chains is that of facilitating the balancing of demand and supply. To effectively manage the forward and reverse flows in the supply chain, firms have to deal with upstream supplier exchanges and downstream customer demands.
Detailed explanation-2: -Safety stock is the most common buffer against uncertainty. Excess stock of raw materials, parts, or finished products helps firms navigate unexpected demand spikes or supply shortages.
Detailed explanation-3: -In such situations, having sufficient buffer inventory helps safeguard your business from unexpected delays and shifts in demand. Thus, it reduces the likelihood of out-of-stock issues and lost sales.