When designing a supply chain for strategic advantage, a company first should consider:

When designing a supply chain for strategic advantage, a company first should consider:
A . the impact on customers using Just-in-Time manufacturing.
B . the financial stability of suppliers.
C . matching the supply chain to product type.
D . whether to use custom or standard parts.

View Answer

Answer: C

Explanation:

When designing a supply chain for strategic advantage, the first consideration should be matching the supply chain to the product type. Different products have different requirements in terms of production, distribution, and inventory management. For instance, functional products with predictable demand benefit from efficient supply chains focused on cost minimization, while innovative products with uncertain demand require responsive supply chains that emphasize flexibility and speed.

Reference: Fisher, M. L. (1997).

What is the right supply chain for your product? Harvard Business Review, 75(2), 105-116.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.

Pearson.