It is desirable for a firm in a responsive supply chain to have:
A) low-capacity cushions.
B) delivery by railroad.
C) high-capacity utilization consistent with high-volume delivery.
D) inventory investments as needed to enable fast delivery times.

Question

Quizplus · Accepted Answer

In a responsive supply chain, the key priority is fast delivery times. Hence, firms should invest in inventory as needed to enable quick delivery times. Having low-capacity cushions (A) or delivery by railroad (B) may not always be feasible or practical in achieving this goal. While high-capacity utilization consistent with high-volume delivery (C) may result in lower costs, it may not always be ideal in a responsive supply chain where flexibility and quick response time are crucial.

It Is Desirable for a Firm in a Responsive Supply