If stockouts persist in a district, which policy change would most likely reduce stockouts?

• A. Centralize to a single supplier
• B. Implement buffer stocks and diversify suppliers with accountability
• C. Eliminate buffer stocks
• D. Rely on donor shipments alone

Answer: (B)

Stockouts happen when supply and demand aren’t aligned due to delays, lead-time variability, or interruptions in delivery. Having buffer stocks creates a safety margin so services can continue even if a shipment is late or demand rises suddenly. Diversifying suppliers reduces dependence on any one source, so if one supplier falters there are alternatives ready to supply. Accountability ensures suppliers meet performance standards, deliver on time, and provide accurate, timely reporting, which improves transparency and helps managers trigger corrective actions before stockouts occur. Put together, buffer stocks, multiple reliable suppliers, and solid accountability build resilience in the district’s supply chain and lower the likelihood of stockouts. In contrast, centralizing to a single supplier introduces a single point of failure; eliminating buffer stocks removes the cushion against disruptions; and relying solely on donor shipments is unpredictable and cannot reliably maintain steady availability.