Asked by Steven Walsh on Jun 09, 2024
Verified
Henderson Air used to source all of their supplies from three suppliers. However, to remain competitive in recent years, Henderson has started to source supplies from more suppliers in order to obtain the best prices. Some of these suppliers are overseas. As a result, the firm's inventory levels:
A) have increased.
B) have decreased.
C) have stayed the same.
D) can't be determined.
Inventory Levels
The quantity of goods or materials on hand at any given time within a business, critical for meeting customer demand and operational efficiency.
- Recognize the role of supply chain dynamics and how sourcing strategies affect inventory levels.
Verified Answer
KW
Kenneth WhiteJun 14, 2024
Final Answer :
A
Explanation :
Sourcing supplies from more suppliers, especially overseas, often leads to higher inventory levels due to longer lead times and the need to mitigate the risk of supply chain disruptions.
Learning Objectives
- Recognize the role of supply chain dynamics and how sourcing strategies affect inventory levels.