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Question 53

A group of trading partners that produce and distributes supplies to commercial and industrial customers has decided to pursue competitive advantage by being responsive to customers' needs. The most appropriate positioning of safety stock to support this initiative would be at:

    Correct Answer: B

    To be responsive to customers' needs, safety stock should be positioned as close as possible to where the demand arises. Placing safety stock at the distribution centers (DCs) closest to the customers ensures that inventory is readily available to meet customer demands quickly, thus enhancing responsiveness. This approach minimizes lead times and improves service levels, making it the most appropriate positioning for achieving a competitive advantage through responsiveness.

Discussion
SolidchumaOption: B

closest to customers should be for responsiveness so I chose B.

MahiSNOption: B

B is correct

WHITExSPIRITOption: B

I agree it should be B "DCs closest to the customer"

flyover11300Option: B

Why wouldn't this be DCs closest to the customer? I think answer is B

flyover11300

As this is responsiveness

PrasathkmkOption: C

Each node in dis channel