Asked by Danique Mcfarlane on May 21, 2024
Verified
The tailored strategy "Focus on low-cost,decentralized capacity for predictable demand" follows which risk mitigation strategy?
A) Get redundant suppliers.
B) Increase capacity.
C) Increase responsiveness.
D) Increase inventory.
Risk Mitigation Strategy
Plans and actions implemented to reduce or manage the potential negative impacts of identified risks on a project or business operation.
Predictable Demand
The level of product or service consumption that can be forecasted with a high degree of accuracy based on historical data and market analysis.
- Evaluate how uncertainty in demand and pricing affects strategies within the supply chain, particularly in relation to contracts and making decisions about capacity.
Verified Answer
SR
Salma RamirezMay 24, 2024
Final Answer :
B
Explanation :
The strategy of focusing on low-cost, decentralized capacity for predictable demand is aimed at increasing the capacity to meet the demand in a cost-effective manner, thereby mitigating the risk of capacity shortages or production stoppages. This strategy does not involve getting redundant suppliers or increasing inventory levels, nor does it necessarily improve responsiveness to sudden changes in demand.
Learning Objectives
- Evaluate how uncertainty in demand and pricing affects strategies within the supply chain, particularly in relation to contracts and making decisions about capacity.
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