Managers must decide where in the supply chain to hold inventory. In general, the decision about where to position inventory is based on two general truths (check two answers) : A. The flexibility of inventory decreases as materials move up the supply chain. B. The flexibility of inventory decreases as materials move down the supply chain. C. The cost and value of inventory increase as materials move up the supply chain. D. The cost and value of inventory increase as materials move down the supply chain.

Question

Business

Jaquan Wall

1 February, 18:21

Managers must decide where in the supply chain to hold inventory. In general, the decision about where to position inventory is based on two general truths (check two answers) : A. The flexibility of inventory decreases as materials move up the supply chain. B. The flexibility of inventory decreases as materials move down the supply chain. C. The cost and value of inventory increase as materials move up the supply chain. D. The cost and value of inventory increase as materials move down the supply chain.

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Gunnar Mckenzie · Answer 1

A. The flexibility of inventory decreases as materials move up the supply chain.

D. The cost and value of inventory increase as materials move down the supply chain.

Explanation:

As we know that the supply chain is an important part of management. As this is the part where the management can regulate the savings. As the supply chain if processed properly the company can increase its wealth, and that the company in case of poor management of supply chain can decrease its performance.

The correct decision at what time the supply shall be stopped, or at what time the inventory shall be put on hold, shall be taken care of.

Further, as more and more processing is done inventories value increases, as more work and processing is done on it.