Which of the following is a method to improve supply chain performance?

Prepare for the FBLA Supply Chain Management Test with flashcards and multiple choice questions. Each question includes hints and explanations. Ensure your success and confidence on the exam day!

Making actual demand data available to suppliers is a highly effective method for improving supply chain performance. When suppliers have access to accurate and timely demand information, they can better align their production schedules, inventory levels, and resource allocation with the retailer's needs. This transparency helps to reduce the uncertainty that often leads to inefficiencies in inventory management and can help prevent stockouts or excess inventory.

By sharing demand data, suppliers can also leverage this information to optimize their operations, leading to improved lead times and reduced costs, ultimately enhancing the overall responsiveness of the supply chain. This collaboration fosters a more agile supply chain where adjustments can be made quickly based on real-time demand fluctuations, thereby enhancing customer satisfaction.

In contrast, increasing minimum order quantities can lead to excess inventory and increased holding costs, while eliminating safety stock management may expose the supply chain to greater risk of stockouts. Lengthening the supply chain can introduce delays and inefficiencies, as it often leads to increased lead times and complexity.

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