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A group of trading partners that produce and distributes supplies to commercial and industrial customers has decided to pursue competitive advantage by being responsive to customers' needs. The most appropriate positioning of safety stock to support this initiative would be at:
Correct Answer: B
Positioning safety stock at distribution centers (DCs) closest to customers supports responsiveness by reducing lead times and ensuring that products are readily available to meet customer demands. This strategy allows the company to quickly respond to fluctuations in demand and maintain high service levels. It aligns with the goal of competitive advantage through customer responsiveness by minimizing the time it takes to get products from the warehouse to the customer, thus enhancing customer satisfaction. References: * Christopher, M. (2016). Logistics & Supply Chain Management. Pearson. * Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill Education.