Practice Quiz

Supply Chain Management

Category - Demand

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Consider Green Gardening Tools. Demand for garden tools is seasonal, with sales concentrated in the spring. Green Gardening needs to plan how it will meet the demand to maximize profit. One way to meet demand requires Green Gardening to carry enough manufacturing capacity to meet demand in any period.

The advantage of this approach is ________________.
  1. That Green Gardening incurs very low inventory.
  2. That Green Gardening incurs maximum profits.
  3. That Green Gardening incurs high inventory.
  4. That Green Gardening incurs maximum supply in a season.
Explanation
Answer: A - If the demand for garden tools is seasonal, with sales concentrated in the spring. Green Gardening needs to plan how it will meet the demand to maximize profit. One way to meet demand requires Green Garden to carry enough manufacturing capacity to meet demand in any period. The advantage of this approach is that Green Garden incurs very low inventory, because no inventory needs to be carried from period to period.
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