The First Step in Achieving Strategic Fit Between Competitive and Supply

question 58

Multiple Choice

The first step in achieving strategic fit between competitive and supply chain strategies is to

• A)understand the supply chain and map it on the responsiveness spectrum.
• B)understand customers and supply chain uncertainty.
• C)match supply chain responsiveness with the implied uncertainty of demand.
• D)ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness.

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Definitions:

Fixed Production Costs

Costs that do not change with the level of production or output and must be paid regardless of the volume produced.

Net Income

The total earnings of a company after subtracting all expenses and taxes from its total revenues.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating the amount contributed toward covering fixed costs and generating profit.

Units Sold

The total number of a product's units that have been sold during a certain period.