A company produces and distributes a family of soft drinks in a single country. It has developed and will introduce a new family of soft drinks for weight- and health-conscious individuals. There currently are no competitors with nationwide distribution for this category of soft drinks. Which of the following supply chain strategies would be most appropriate for the two product families?

Question

Quizplus · Accepted Answer

Producing the current product family to forecast allows for efficient production planning and reduces lead times, as well as ensuring adequate inventory levels for demand. However, the new product family should be produced to order to avoid unnecessary inventory costs and minimize the risk of overproduction. As there are no competitors for this new category of drinks, producing to order will not result in delayed delivery, and it will also allow for customization of orders to meet specific customer needs.

A Company Produces and Distributes a Family of Soft Drinks