Question

Which of the following statements is true of a responsive supply chain?

a. It works best when demand is stable and predictable.
b. It works best when product life cycles are short and change often because of innovation.
c. It works best when customers require standardization rather than customization.
d. It works best when contribution margins are low.

Answer 1

Responsive supply chain works best when product life cycles are short and change often because of innovation (Option B).

Step-by-step explanation:

A responsive supply chain is characterized by its ability to adapt quickly to changes in demand, market conditions, and product innovations. Option B is true because in industries where product life cycles are short and innovation is frequent, a responsive supply chain is crucial for efficiently introducing new products and adapting to changing market trends. This allows companies to stay competitive by quickly responding to customer demands and market shifts.

Options A, C, and D do not align with the characteristics of a responsive supply chain, which thrives in dynamic environments with short product life cycles and frequent innovations.

Option B is the answer.