Kelly's firm processes and packages organic nuts and nut butters. Last year, the firm started selling its products to Costco, the discount retailer, in addition to traditional retail chains. This new opportunity is wonderful for Kelly's firm, but the Costco-bound products require different packaging, and the volume and frequency of the Costco orders have placed a strain on the firm's resources. Kelly may need to re-evaluate the firm's supply chain network design due to which significant trend?
A) Changes in customer service requirements
B) Changes in corporate ownership
C) Shifting locations of customer and/or supply markets
D) Cost pressures

Question

Quizplus · Accepted Answer

The significant trend that Kelly's firm is facing is changes in customer service requirements, as the Costco-bound products require different packaging and the volume and frequency of the Costco orders have placed a strain on the firm's resources. This would require Kelly to re-evaluate the firm's supply chain network design to better meet the new customer service requirements.

Kelly's Firm Processes and Packages Organic Nuts and Nut Butters