Which of the following areas of concern is an important strategic inventory management decision?
Which of the following areas of concern is an important strategic inventory management decision?
One of the key strategic inventory management decisions is determining where in the supply chain inventory should be kept. This decision critically impacts the efficiency and cost-effectiveness of the supply chain. Proper placement of inventory can help in reducing lead times, minimizing holding costs, and ensuring that customer demand is met promptly. This involves optimizing the locations of distribution centers, warehouses, and other stocking points.
Wy not Answer A? An important strategic inventory management decision is determining how much inventory to order for each replenishment cycle.
The strategic decision regarding where in the supply chain inventory should be kept is crucial for optimizing inventory management. Deciding on the most appropriate locations for holding inventory involves considerations such as distribution centers, warehouses, and stocking points to meet customer demand efficiently while minimizing holding costs and lead times.
C is correct.