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