What is the trade-off that this organization needs to consider?

An organization with a cost leadership strategy is considering choosing a supply partner.

What is the trade-off that this organization needs to consider?
A . A trade-off between cost margins and compensation claims
B . A trade-off between cost efficiency and responsiveness
C . A trade-off between digital platforms and Lean processes
D . A trade-off between robotics and batch processes

View Answer

Answer: B

Explanation:

An organization with a cost leadership strategy must balance cost efficiency with responsiveness. This trade-off involves economies of scale within the supply chain while ensuring that logistics systems maintain cost margins without causing delays due to excessive focus on economies of scale. [P-31]