Which of the Following Describes Either Lean or Agile Supply

question 42

Multiple Choice

Which of the following describes either lean or agile supply chains?

• A) In a lean supply chain,products are built before demand occurs; unsold goods are treated as short-term loss incurred to increase market presence.
• B) Lean supply chains wait until demand is big enough to help production reach economies of scale so that the waste is minimum or nil.
• C) Agile strategies try to forecast demand and reduce waste,with the aim to maximize customer responsiveness in specific market segments.
• D) Agile supply chains wait for demand to occur and use communication and flexibility to fill that demand quickly.

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Definitions:

Opportunity Costs

The cost of the next best alternative foregone when a decision is made to choose one option over another.

Tax

Mandatory financial charges imposed by a government on individuals and organizations to fund public expenditures.

Market Price

The current price at which a good or service can be bought or sold, determined by the balance of supply and demand in the market.

Consumer Surplus

The differential in the total price consumers are interested and capable of paying for a product or service and the actual price paid.