1D0-525 · Question #115
Vera's new e-business failed in its second year because inventory levels were constantly depleted and she was unable to satisfy order fulfillment. The most likely underlying reason for the failure…
The correct answer is D. supply chain management. See the full explanation below for the reasoning.
Question
Vera's new e-business failed in its second year because inventory levels were constantly depleted and she was unable to satisfy order fulfillment. The most likely underlying reason for the failure may be that Vera's business plan did not address:
Options
- Ainventory storage requirements.
- Bmarketing strategies and tactics.
- Ccustomer demographics.
- Dsupply chain management.
How the community answered
(51 responses)- A8% (4)
- B2% (1)
- C12% (6)
- D78% (40)
Community Discussion
7Supply chain management is the correct answer, D. The scenario describes a classic supply chain breakdown, stockouts happening repeatedly and order fulfillment collapsing, which points directly to Vera not having a plan for sourcing, supplier relationships, reorder triggers, or lead times. Inventory storage (A) is a subset concern and would not by itself cause persistent depletion, marketing (B) and demographics (C) are demand-side issues that have nothing to do with why shelves go empty. A solid business plan must account for the full flow from supplier to customer, and skipping that piece is exactly the kind of oversight that kills an otherwise viable operation in year two.
Supply chain management is definitely the right call here, because if Vera had no plan for coordinating her suppliers and replenishment cycles, running out of inventory was basically inevitable no matter how good her marketing or storage setup was. A solid SCM strategy covers demand forecasting and vendor relationships, which are exactly what keep stock levels stable during growth.
Think SCM, "She Could not Move" product to customers because the pipeline from supplier to shelf was never planned, and that is exactly what inventory depletion plus failed fulfillment screams on this exam. Quick question for you though, do you know the difference between inventory storage (just where you keep stuff) and the full chain of getting stuff made, shipped, and delivered in time, because the exam loves to bait you with option A here?
Inventory keeps running dry and orders can't be filled, that points straight to the pipeline feeding the shelves, not the shelves themselves, so D makes sense here. Did Vera's plan even account for supplier lead times, reorder points, or backup vendors, or was the whole supply side just assumed to work itself out?
Yeah D is the right call, but I would also push back a little and say that even a solid replenishment pipeline falls apart if the reorder points were set using stale demand data, which sounds like it could be an issue here too.
Customer demographics drive demand forecasting, so Vera could not predict inventory needs.
Hey Naledi, good try but D is actually the right call here, because historical sales data is what drives demand forecasting in this scenario, and Vera absolutely can use that to predict inventory needs. Think "D for Data that's already Done," meaning past transactions give Vera everything she needs without relying on demographics at all.