Responsive supply chains should be preferred when:
A) product variety is low.
B) demand is predictable.
C) contribution margins are low.
D) product variety is high.

Question

Quizplus · Accepted Answer

Responsive supply chains are designed to quickly respond to fluctuations in demand and changes in customer preferences. Therefore, they should be preferred when product variety is high, as this implies a greater likelihood of demand variability and the need for customization. When product variety is low, a cost-efficient supply chain would be more appropriate. Predictable demand would also not require a responsive supply chain. Contribution margins being low would warrant a focus on cost-cutting measures rather than investing in a responsive supply chain.

Responsive Supply Chains Should Be Preferred When