The objective of a firm in a responsive supply chain is likely to be realized if it has a:
A) standardized product.
B) short lead time.
C) low-capacity cushion.
D) line-flow process.

Question

Quizplus · Accepted Answer

The objective of a responsive supply chain is to be able to quickly respond to changes in demand or customer preferences. A short lead time, or the time it takes to fulfill an order, is crucial in achieving this objective. Choice A is not necessarily a requirement for a responsive supply chain, as customized products can also be produced quickly. A low-capacity cushion (Choice C) refers to the amount of extra capacity a firm maintains as a safety net, and while it can help increase responsiveness, a high capacity cushion can also be necessary in certain situations. A line-flow process (Choice D) is a manufacturing process that involves a consecutive flow of steps, and while it can be efficient, it does not directly relate to the objective of a responsive supply chain.

The Objective of a Firm in a Responsive Supply Chain