Strategic Supply Chain Management Practice Exam

What type of supply chain is typically categorized as highly responsive?

1. Integrated Steel Mills

2. Hanes Apparel

3. Most Automotive Production

4. 7-11 in Japan

The correct answer is: 7-11 in Japan

The classification of a highly responsive supply chain relates to its ability to quickly adapt to changes in customer demand and efficiently manage inventory levels. 7-11 in Japan exemplifies this characteristic through its innovative supply chain management practices, which focus on local responsiveness and quick replenishment cycles. The company employs a just-in-time inventory system that allows for constant monitoring of sales data and stock levels. This system enables 7-11 to react promptly to consumer needs, ensuring that the right products are in the right place at the right time. The use of data analytics facilitates quick decision-making and logistics operations, further enhancing their responsiveness to market fluctuations. In contrast, other companies, like integrated steel mills, apparel manufacturers such as Hanes, and automotive production facilities, tend to have supply chains that lean more towards efficiency or are constrained by longer production lead times. While they may incorporate certain elements of responsiveness, they primarily focus on mass production and cost management, making them less adaptive to rapid changes in demand compared to 7-11’s model.