Final answer:
A responsive supply chain is preferred when a company has flexible purchasing, production, and distribution systems in place, allowing it to quickly adapt to demand changes, market conditions, and expedite new product introductions. a. delivery times are long
Step-by-step explanation:
A responsive supply chain is essential for businesses that face certain market conditions. The term refers to the ability of a supply chain to react and adapt quickly to changes in market demand. So, when is a responsive supply chain preferred?
A responsive supply chain is preferred when e. flexible purchasing, production, and distribution systems are in place. This allows a company to react swiftly to demand fluctuations, shorten delivery times, reduce inventory levels, and introduce new products rapidly. In contrast, situations characterized by long delivery times, high inventory investments, and infrequent new product introductions typically require a different supply chain approach.
Advancements in technology, transportation methods, vehicles, and labor policies play crucial roles in developing responsive supply chains. These improvements help ensure that companies can maintain operational effectiveness even during national emergencies. Moreover, providing access to new technologies for developing countries can foster faster and more efficient supply chain processes globally.
On the supply side of the market, producers generally find it easier to expand production over the long term of several years rather than in the short term of a few months. In the context of responsive supply chains, this capability to expand is critical, as it underlies the adaptability of the supply chain itself.
Additionally, transportation infrastructure affects the responsiveness of supply chains. For instance, shipping finished goods over less congested networks can significantly reduce costs and enhance shipping times. Therefore, access to uncrowded freeways, rail, or water transport can significantly improve the responsiveness of a supply chain.