Supply Chain Management

Category - Strategy Alignment

The primary goal of an efficient supply chain is to supply demand at the ______ cost, whereas the primary goal of a responsive supply chain is to __________ to the demand.
  1. Highest; Respond slowly.
  2. Lowest; Respond quickly.
  3. Average; Not respond.
  4. None of the above.
Explanation
Answer: B - The primary goal of an efficient supply chain is to supply demand at the lowest cost, whereas the primary goal of a responsive supply chain is to respond quickly to the demand. Similarly, the pricing strategy on an efficient supply chain should be lower margins because price is a prime customer driver, whereas a responsive supply chain should have higher margins because price is not a prime customer driver.
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