Strategic Supply Chain Management Practice Exam

Supply Chain Responsiveness involves the ability to handle which of the following?

1. High inventory costs

2. Low service levels

3. Short lead times

4. Minimal product variety

The correct answer is: Short lead times

Supply chain responsiveness is fundamentally about a supply chain's ability to react quickly to customer demands and market changes. This concept emphasizes the importance of agility in fulfilling customer orders, adapting to fluctuations in demand, and efficiently managing production and distribution processes. Handling short lead times is a key component of supply chain responsiveness. It indicates that a supply chain can quickly deliver products or services to customers, which is essential in meeting immediate market needs or changes in consumer behavior. The ability to minimize lead times enhances customer satisfaction and can help a company gain a competitive edge by ensuring timely availability of products. In contrast, high inventory costs, low service levels, and minimal product variety do not contribute positively to responsiveness. High inventory costs can indicate inefficiencies and may hinder flexibility. Low service levels suggest an inability to meet customer expectations, while minimal product variety can limit a company's ability to respond to diverse consumer preferences. Thus, short lead times are integral to achieving a responsive supply chain that effectively meets customer needs.