TRUE. Decoupling inventories refer to the buffering effect that inventories have at each stage of the supply chain.
Decoupling inventory refers to the practice of product manufacturers setting aside extra raw materials or work-in-progress goods for all or some stages in a production line, preventing operations from being slowed or stopped by low stock levels or breakdowns at one stage.
In close proximity to the operational zone, a decoupling point serves as both a strategic distribution center and a safety cushion to shield the supply chain network from demand shocks. Decoupling points or nodes also link supply chain pathways to customers in the context of global supply chain management.
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