Practice Quiz

Supply Chain Management

Category - Inventory

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When managing inventory to meet predictable variability, firms use which of the following approaches?
  1. Using common components across multiple products.
  2. Using specific components across multiple products.
  3. Using multiple components across specific products.
  4. None of the above.
Explanation
Answer: A - Using common components across multiple products is the approach in which a firm designs common components used in various products, with each product having predictably variable demand that results in relatively constant overall demand. Therefore, the result in the demand for the components will be constant.
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