True or False: Supply can ensure an uninterrupted flow of materials by maintaining a large inventory.

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Prepare for the ASU SCM355 Supply Management Exam 1 with practice quizzes. Test your knowledge with flashcards and multiple choice questions, complete with detailed explanations. Master your exam!

Maintaining a large inventory can indeed help ensure an uninterrupted flow of materials in supply management. This strategy acts as a buffer against uncertainties in supply or demand fluctuations, allowing companies to meet production schedules and customer demands without delay. A sufficient inventory can mitigate the risk of stockouts, particularly when lead times are variable or when suppliers face their own challenges.

However, it's essential to remember that while a large inventory can provide a solution to continuity issues, it's not the only strategy available. Factors such as inventory carrying costs, the risk of obsolescence, and the need for just-in-time (JIT) practices can influence whether a large inventory is the best choice. Therefore, although the statement holds merit, it can also be subject to limitations depending on specific circumstances within the supply chain.

Overall, the assertion that supply can maintain an uninterrupted flow through large inventory is generally valid, making it a true statement in this context.

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