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Question: 1 / 2185

What attributes are common in responsive supply chains?

Low product variety and long lead times

High forecast accuracy and few warehouses

Forecasting errors can be high and multiple warehouses for customer proximity

Responsive supply chains are designed to be agile and adaptable to changing customer demands. One of the defining attributes of these supply chains is their ability to manage uncertainty effectively, which can be reflected in their approach to inventory and distribution.

The correct choice highlights that forecasting errors can be high in responsive supply chains. This is because these supply chains often prioritize speed and flexibility over strict adherence to forecasts. They may rely on real-time data to react quickly to consumer demand fluctuations rather than on detailed long-term forecasts. Additionally, they often utilize multiple warehouses to ensure proximity to customers, which allows them to fulfill orders more rapidly and meet the immediate needs of the market.

In contrast, the other options are less aligned with the characteristics of responsive supply chains. For example, low product variety and long lead times contradict the agile nature of responsive supply chains, which thrive on variety and speed. Similarly, high forecast accuracy and few warehouses suggest a more efficient, but less flexible supply chain, which is often associated with efficient supply chains rather than responsive ones. Finally, a focus on minimal supply risks and efficient processes indicates a preference for stability, which does not align with the inherent unpredictability and necessary adaptability of responsive supply chains.

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Minimal supply risks and efficient production processes

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