Question

Jordan runs a shoe manufacturing company. He’s concerned about recent trade wars that might limit his supply of quality leather, so Jordan might consider increasing his levels of:

Group of answer choices:

A. Cycle Stock

B. BoM

C. Just-in-time inventory

D. Bill of Lading

E. Safety stock

Answer 1

Jordan, concerned about trade wars affecting his leather supply, should increase his safety stock to mitigate supply chain risks.

Step-by-step explanation:

Jordan runs a shoe manufacturing company and is concerned about recent trade wars that might limit his supply of quality leather. Given this scenario, Jordan might consider increasing his levels of safety stock. Safety stock refers to the inventory a company holds to protect against unforeseen supply chain disruptions. In contrast, cycle stock is the portion of inventory that companies go through on a regular basis, Just-in-time inventory involves receiving goods only as they are needed in the production process, Bill of Lading is a legal document issued by a carrier to acknowledge receipt of cargo for shipment, and BoM (Bill of Materials) is a comprehensive list of parts, items, and materials required to produce a product.