Question

In: Operations Management

compare and contrast efficient versus responsive supply chains. what environments and design featuers are evident in...

compare and contrast efficient versus responsive supply chains. what environments and design featuers are evident in each? provide example of each

Solutions

Expert Solution

Factors

Efficient Supply Chain

Responsive Supply chain

Definition

An efficient supply chain moves the product to the destination (warehouse or retail outlets) efficiently with minimal cost.

In a responsive supply chain, the supply chain should meet the needs of both the business and customers.

Lead times

shorter production-lead times

Longer production lead times

Batch size

Large batch size

Low batch size

Customer satisfaction

Customer satisfaction is directly linked to the efficient supply chain.

Customers sometimes reject the order and order specific other products and demand faster delivery. Responsive supply chain handles returns efficiently and provides faster delivery, high-quality products.

Demand variation Environment

Low demand variation is usually the business environment for efficient supply chain.

High demand variation can be met only with the help of responsive supply chain

Design of supply chain

Planned and purposive design

Unplanned and demand dependant

Example

Apple, Amazon, Coca-Cola

Dell computers are manufactured after the order is placed as per the customer requirements in the configurations.


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