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What are the characteristics of efficient, responsive, risk-hedging, and agile supply chains? Can a supply chain be both efficient and responsive? Risk-hedging and agile? Why or why not?

Short Answer

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Supply chain management is managing the proper flow of goods and services, from its manufacturing locations to its ultimate users.

Step by step solution

01

Characteristics of efficient, responsive, risk-hedging, and agile supply chains

  • Efficient supply chain characteristics:
  1. They are cost-efficient
  2. Optimum usage of resources
  • Responsive supply chain characteristics:
  1. They are flexible
  2. Can change as per time and need
  • Risk hedging supply chain characteristics:
  1. They use various alternatives to cover the risk
  2. They share inventory as per need
  3. They utilize various strategies for risk management
  • Agile supply chain characteristics:
  1. As per customers' needs, they are flexible and responsive in nature
  2. They make a pool of resources to minimize the risk
02

supply chain is efficient and responsive as well as risk-hedging and agile. Why or why not

Yes, a supply chain is both efficient and responsiveas an efficient supply chain use optimized routes of shipping, warehousing facilities, as well as their business partners, which are high quality to supply raw material on time.

They have a proper inventory management system. Their main focus is customer satisfaction whereas a responsive supply chain accurately delivers products as per order they can scale up production as per needs. They both are the same as their main focus is customer satisfaction.

A supply chain can be both risk–hedging and agile, as a risk hedging supply chain uses various alternatives to cover the risk. They share inventory as per needs as well as utilize various measures for risk management. While an agile supply chain is responsive and flexible and by making the pool of resources they work efficiently. So, it concludes supply chain can be both risk hedging and agile at the same time.

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Most popular questions from this chapter

Question:Create a value stream map (VSM) of this supply chain. What other information is needed?


Question:Santa Cruz Bottling is a manufacturer of organic soft drinks on the coast of central California. Its products are enjoying a growing reputation and increased demand throughout the American Southwest. Because of the high cost of transporting soft drinks, it is considering a new plant to serve the states of New Mexico and Arizona. A key concern in its search for a new location is the resultant transportation costs to serve its key markets. Following is a list of cities where its main wholesale customers are located, along with estimated annual demand in cases of product for each.

City

x-coordinate

y-coordinate

No. of cases

Phoenix

250

250

25,000

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350

125

20,000

Albuquerque

800

450

28,000

Santa Fe

850

520

17,000

a. Use the centroid method to recommend a location for the new bottling plant. Round your coordinates to one decimal place.

b. Do you have any concerns about the result? How would you deal with them?

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