Which of the following methods help reduce price and currency fluctuations in a global supply chain? (Select all that apply)

Which of the following methods help reduce price and currency fluctuations in a global supply chain? (Select all that apply)
A . Currency choice
B . Supply chain optimization
C . Just-in-time inventory
D . Currency options

View Answer

Answer: A, D

Explanation:

There are five methods for reducing price and currency fluctuations in a global supply chain. Among these methods, the following two are mentioned:

Currency choice: Setting transaction pricing in the currency of the buyer to transfer foreign exchange risk to the customer.

Currency options: Buying contracts that give the organization the right to buy or sell currency at an agreed price within a specific time period, reducing the risk of unfavorable fluctuations.

The other options (B and C) are not mentioned as methods for reducing currency fluctuations in the text. [P-21]