Final answer:
An agile supply chain is used for functional products with an evolving supply process in Hau Lee's uncertainty framework. It emphasizes the ability to adapt swiftly to market dynamics and changing supply conditions, vital for sustainability and resilience in the face of technological advancements and climate change impacts.
Step-by-step explanation:
In Hau Lee's uncertainty framework to classify supply chains, a supply chain for functional products with an evolving supply process is called agile. This classification is part of a framework that helps businesses recognize how to manage their supply chains effectively under different circumstances. Functional products typically have a stable demand, but when combined with an evolving supply process, they require a supply chain that is flexible and can respond quickly to changes. An agile supply chain is characterized by its ability to adapt rapidly to market changes and its flexibility in managing supply in response to demand variations.
For a sustainable future, it's crucial that supply chains in industries such as food production and distribution adapt to technological advancements and shifts caused by changing climates. In doing so, they have to consider various stages from production to consumption. Advancements in technology, transportation methods, labor policies, and new strategies to cope with climate effects are some ways to improve supply chains for both functional and innovative products.
To maintain stability and effectiveness, it is essential for supply chains to become more resilient and dynamic, and the agile model offers a structure that can cope with the complexity and uncertainty of contemporary supply chain management, particularly in a world that faces ongoing environmental, social, and economic challenges.