Question

1-When using the supply chain uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is called which of the following?

Multiple Choice

• Efficient

• Forward-looking

• Agile

• Risk hedging

• Responsive

  -------------------------------------------

2-When using the supply chain uncertainty framework to classify supply chains, a supply chain for innovative products with a stable supply process is called which of the following?

Multiple Choice

• Efficient

• Forward-looking

• Agile

• Risk hedging

• Responsive

• -----------------------------------------

I chose the question one (Responsive) incorrect.

the second question I chose (Agile) incorrectly.

please see this note because it is very important, before the answers to the questions.

and give to me why, please.

Answer 1

1.) Answer is 'Efficient'

The reason is that the demand for funtional products can be predicted, as these are the products, which people buy from retail outlets in wide range and has long life cycles. Since these products are sold in large quantity, due to higher demand, there will be a huge competition in the market in terms of cost, which results in low profit margin. Hence the physically efficient supply chain strategy is required to overcome the demand, thus improving the profit. In this process, the manufacturers, suppliers and retailers coordinate with each other to meet the demand at lower cost.

2.) Answer is 'Responsive'

The reason is that the demand for innovative products, which are new to market cannot be predicted, but when compared to functional products, these innovative products have higher profit margin. Innovative products have less competition in the market. These products can only be procured through dedicated outlets. Though the demand for these products cannot be predicted, they can enjoy higher profit with lesser competition. These products are responsive to market demands, which are unpredictable. Hence innovative products require responsive supply chain approach for maintaining the stable supply process.