The supply chain disruption risk mitigation strategy that can also improve supply chain cost efficiency is "Reducing supply chain complexity".

Here's why:

1. Having multiple suppliers: This strategy can indeed mitigate risk by providing alternatives if one supplier fails. However, managing multiple suppliers can increase costs due to the need for additional management and coordination.

2. Increasing inventory levels: While this can act as a buffer against supply chain disruptions, it can also lead to increased costs for storage, insurance, and potential obsolescence.

3. Adding capacity at different locations: This can help to ensure continuity of supply if one location is disrupted. However, it can also lead to increased costs due to the need for additional facilities, equipment, and staff.

4. Reducing supply chain complexity: This strategy can both mitigate risk and improve cost efficiency. A simpler supply chain is easier to manage and control, reducing the likelihood of disruptions. It can also lead to cost savings through improved efficiency and reduced waste.

Question

The supply chain disruption risk mitigation strategy that can also improve supply chain cost efficiency is "Reducing supply chain complexity".

Here's why:

1. Having multiple suppliers: This strategy can indeed mitigate risk by providing alternatives if one supplier fails. However, managing multiple suppliers can increase costs due to the need for additional management and coordination.

2. Increasing inventory levels: While this can act as a buffer against supply chain disruptions, it can also lead to increased costs for storage, insurance, and potential obsolescence.

3. Adding capacity at different locations: This can help to ensure continuity of supply if one location is disrupted. However, it can also lead to increased costs due to the need for additional facilities, equipment, and staff.

4. Reducing supply chain complexity: This strategy can both mitigate risk and improve cost efficiency. A simpler supply chain is easier to manage and control, reducing the likelihood of disruptions. It can also lead to cost savings through improved efficiency and reduced waste.

Knowee AI · Accepted Answer

The supply chain disruption risk mitigation strategy that can also improve supply chain cost efficiency is "Reducing supply chain complexity".

Here's why:

1. Having multiple suppliers: This strategy can indeed mitigate risk by providing alternatives if one supplier fails. However, managing multiple suppliers can increase costs due to the need for additional management and coordination.

2. Increasing inventory levels: While this can act as a buffer against supply chain disruptions, it can also lead to increased costs for storage, insurance, and potential obsolescence.

3. Adding capacity at different locations: This can help to ensure continuity of supply if one location is disrupted. However, it can also lead to increased costs due to the need for additional facilities, equipment, and staff.

4. Reducing supply chain complexity: This strategy can both mitigate risk and improve cost efficiency. A simpler supply chain is easier to manage and control, reducing the likelihood of disruptions. It can also lead to cost savings through improved efficiency and reduced waste.

Which of the following supply chain disruption risk mitigation strategies can also improve supply chain cost efficiency?Group of answer choicesHaving multiple suppliersIncreasing inventory levelsAdding capacity at different locationsReducing supply chain complexity

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