92Y Supply Active Guard Reserve (AGR) Practice Exam

Question: 1 / 400

How does asset visibility contribute to effective logistics management?

By minimizing regulatory compliance costs

By ensuring transparency and tracking of inventory

Asset visibility is crucial in logistics management because it allows organizations to maintain transparency and track inventory levels accurately. This transparency enables logistics managers to understand the availability of assets in real time, facilitating better decision-making related to inventory management, ordering, and distribution. When organizations can see their inventory status, they can effectively respond to demand changes, reduce stockouts or overstock situations, and optimize supply chain processes.

In contrast, while regulatory compliance cost minimization, the elimination of inventory audits, and an increase in the number of suppliers may be relevant to some extent in a broader logistics strategy, they do not directly highlight the core advantage of asset visibility. The essential benefit of being able to monitor and manage assets effectively stems from the ability to ensure that the right products are in the right place at the right time, which significantly supports overall operational efficiency.

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By eliminating the need for inventory audits

By increasing the number of suppliers available

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