Final answer:
The major challenges of supply chain management include 2) maintaining the visibility of inventory, 3)building safety-stock inventory, 4) and pushing inventory back to vendors.
Step-by-step explanation:
One of the major challenges of supply chain management is maintaining the visibility of inventory. This refers to the ability to track and monitor the location, quantity, and movement of products within the supply chain. By maintaining visibility of inventory, companies can more effectively manage their stock levels, prevent stockouts, and ensure timely delivery to customers.
For example, a retailer may use inventory management software that provides real-time updates on stock levels, allowing them to make informed decisions about ordering and replenishment. This helps to prevent overstocking or understocking of products, which can lead to inefficiencies and decreased customer satisfaction.
Another challenge of supply chain management is building safety-stock inventory. Safety stock refers to the extra inventory that a company holds to mitigate the risk of stockouts due to unforeseen events such as supplier delays or sudden increases in customer demand. By having a buffer of safety stock, companies can better respond to demand fluctuations and minimize disruptions to their supply chains.
Lastly, pushing inventory back to vendors can also pose a challenge in supply chain management. This refers to the process of returning unsold or excess inventory to suppliers. It requires effective communication and coordination between the company and its vendors to arrange for the return of the inventory and ensure proper credit or refund is given.