By identifying and eliminating the causes of uncertainty and risk in the supply chain,the supply manager may be able to reduce the needed inventories and therefore buy a lower quantity.

Uncertainty

The lack of certainty or predictability in situations, which can impact decision-making and planning in businesses and personal affairs.

Inventories

Quantities of goods or materials that are held by a business as part of its current assets for the purpose of resale or production.

Supply Chain

A system connecting a business with its providers to manufacture and deliver a particular item to the end consumer.