Question

1. According to Hau Lee’s uncertainty framework, which of the following supply chain is the least challenging to manage?

1. Agile Supply Chain
2. Efficient Supply Chain
3. Responsive Supply Chain
4. Risk-Hedging Supply Chain

     Answer: ______     

2. If the customer value is high, clock speed is high, and the competitive position is weak, the firm should

1. Outsource only
2. Develop in-house capability
3. Acquire a supplier
4. Develop strategic partnering.
5. Either strategy from B, C, D is appropriate.

Answer: ______     

Answer 1

1.

According to Hau Lee’s uncertainty framework, which of the following supply chain is the least challenging to manage?

Correct answer is "B. Efficient Supply Chain"

Rationale:

Efficient supply chains are the supply chains that utilize strategies aimed at creating the highest cost efficiency. For such efficiencies to be achieved, non value added activities should be eliminated, scale economies should be pursued, optimization techniques should be deployed to get the best capacity utilization in production and distribution.

2.

If the customer value is high, clock speed is high, and the competitive position is weak, the firm should

Correct answer is "

1. Either strategy from B, C, D is appropriate."

Rationale:

High customer importance and fast clockspeed means more strategic. Competitive position is critical for assessing value of outsourcing. A decision to outsource will depend on several key issues: Customer importance, product lifecycle, firm’s competitive position, capability of suppliers and product design for manufacturing.

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