Practice Quiz

Supply Chain Management

Category - Demand

Start a Study Session Sign up for Question of the Day
When faced with predictable variability, a company’s goal is to respond in a manner that maximizes profitability. A firm must choose how to handle this by managing the supply using capacity, inventory, subcontracting, and backlogs and managing the demand using __________________.
  1. Short-term price and trade promotions
  2. Long-term discounts and effective marketing
  3. Short-term discounts and long-term sales promotions
  4. None of the above.
Explanation
Answer: A - If faced with predictable variability, a company’s goal is to respond in a manner that maximizes profitability. A firm must choose how to handle it by managing supply using capacity, inventory, subcontracting and backlogs and managing demand using short-term price discounts and trade promotions. The use of these tools enables the supply chain to greatly increase its profitability because it is able to meet supply and demand in a much more coordinated fashion.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz