Raw materials can create a sourcing issue for businesses. How can a business reduce this potential for a bottleneck? O Dual source the raw material from more than one location, thus spreading risk around. Consolidate raw material distribution centers to increase efficiency. O Decrease inventory on hand to reduce warehousing costs. Increase SKUs in product portfolio to create a diversity of products.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Raw materials can create a sourcing issue for
businesses. How can a business reduce this
potential for a bottleneck?
Dual source the raw material from more than one
location, thus spreading risk around.
Consolidate raw material distribution centers to
increase efficiency.
Decrease inventory on hand to reduce
warehousing costs.
O Increase SKUs in product portfolio to create a
diversity of products.
Transcribed Image Text:Raw materials can create a sourcing issue for businesses. How can a business reduce this potential for a bottleneck? Dual source the raw material from more than one location, thus spreading risk around. Consolidate raw material distribution centers to increase efficiency. Decrease inventory on hand to reduce warehousing costs. O Increase SKUs in product portfolio to create a diversity of products.
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