Final answer:
A responsive supply chain is most beneficial for businesses that deal with high product variety, enabling them to adapt production and distribution swiftly to meet dynamic market needs.
Step-by-step explanation:
A responsive supply chain is critical for businesses dealing with high product variety and rapidly changing market demands. These conditions demand agility in the supply chain to adapt quickly to new trends and customer requirements. In contrast, predictable demand, the presence of economies of scale, and a make-to-stock operational strategy typically favor an efficient, cost-focused supply chain, where the emphasis is on producing large quantities of a limited range of products at the lowest possible cost.
Well-known companies like Amazon have mastered responsive supply chains, enabling them to offer a broad array of products and maintain competitive pricing, often undercutting their competitors. This capacity is a significant part of these companies' value proposition, attracting and retaining customers looking for diverse options and quick fulfillment. In conclusion, a responsive supply chain is preferred when high product variety is necessary, allowing firms to quickly adjust production and distribution to meet the ever-changing needs of the market.