L6M10 practice question 7 of 25

An organization is seeking to reduce inventory supply in its supply chain while benefiting from economies of scale and batching. To achieve this goal, which of the following strategies should the organization consider implementing?

Full set: 197 questions
Answer options
A: Keeping long resupply lead times
B: Implementing electronic data interchange (EDI) Correct answer
C: Increasing safety stock levels
D: Offering frequent discounts to customers
Correct Answer:
B. Implementing electronic data interchange (EDI)
Explanation

Electronic data interchange (EDI) provides real-time data on customer demand, reducing artificial ordering fluctuations and improving inventory efficiency. [P-19]

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