Section: Mixed questions

To maintain sales and reduce variability in demand caused by large, infrequent orders, the firm should encourage high-volume customers to place blanket orders. Blanket orders are long-term agreements where customers commit to purchasing a certain amount over a specified period, with regular deliveries as needed.
This approach smooths out demand variability, allows for better production planning, and reduces the need for holding high levels of finished-goods inventory. Reducing discounts for large orders might deter customers, extrinsic forecasting methods do not address the root cause, and increasing safety stock only temporarily mitigates the symptoms without solving the underlying issue.
References:
* Silver, E. A., Pyke, D. F., & Thomas, D. J. (2016). Inventory and Production Management in Supply Chains. CRC Press.
* Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.
Pearson.

Outsourcing involves delegating non-core activities to third-party service providers, allowing the company to focus on its core competencies. Effective implementation of outsourcing can lead to significant cost reductions as external providers can often perform these activities more efficiently. It also helps improve the company's focus by allowing internal resources to concentrate on strategic areas. Additionally, outsourcing can free up assets previously tied up in non-core activities, enabling better allocation of resources and potentially improving financial performance. Supply chain management, service supplier management, and collaboration also offer benefits but are broader in scope and do not specifically target the outcomes mentioned as directly as outsourcing does.
:
Quinn, J. B. (2000). Outsourcing Innovation: The New Engine of Growth. Sloan Management Review.
Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.