A formal currency review as an approach for managing supply chain risk is appropriate when relative currency value:
A formal currency review as an approach for managing supply chain risk is appropriate when relative currency value:
A formal currency review for managing supply chain risk is appropriate when the relative currency value moves above or below a certain level. This is because significant fluctuations in currency exchange rates, in either direction, can impact costs, prices, and consequently the overall supply chain. By continuously monitoring these changes, a company can intervene with strategies to mitigate potential risks associated with sudden currency value changes.
A formal currency review is a systematic process for evaluating the potential impact of exchange rate
A formal currency review is an appropriate approach for managing supply chain risk when the relative currency value moves above or below a certain level. Fluctuations in currency exchange rates can have a significant impact on a company's supply chain performance, particularly if the company sources materials or sells products in multiple countries. A formal currency review can help a company assess the potential impact of currency fluctuations on its supply chain and develop strategies to mitigate the associated risks. By identifying the level at which currency movements become significant, a company can determine when to initiate a currency review and take appropriate action to manage supply chain risk.
This question is not worded well. What exactly is meant by "relative currency value"? The value of the foreign currency relative the the company's native currency? Or the company's native currency to the foreign currency? This would decide whether the answer is A or B