Transportation Operations LINCS Practice Exam

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Which aspect of the supply chain can negatively impact product availability?

Effective inventory management
Pilferage
Timely deliveries
Reliable suppliers

The correct answer is: Pilferage

Pilferage refers to the act of stealing or taking goods without authorization, which can significantly affect product availability in the supply chain. When pilferage occurs, the inventory levels are reduced unlawfully, leading to shortages and disruptions in the supply chain. This diminishes the ability to meet customer demands, resulting in stockouts and potentially lost sales. In contrast, effective inventory management, timely deliveries, and reliable suppliers are all practices that enhance product availability by ensuring that the right products are in the right place at the right time. Thus, pilferage stands out as a negative factor that directly undermines the integrity and efficiency of the supply chain.