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Which supply chain strategy is needed in less predictable environments?  A. Agile  B. Just in time  C. Lean  D. Kanban

Question

Which supply chain strategy is needed in less predictable environments?

A. Agile
B. Just in time
C. Lean
D. Kanban

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Solution

Breakdown the Problem

  1. Identify the characteristics of less predictable environments in supply chains.
  2. Evaluate each supply chain strategy option provided.

Relevant Concepts

  1. Agile Supply Chain: Focuses on flexibility and responsiveness to changing customer demands.
  2. Just-in-Time (JIT): Aims to reduce inventory costs by receiving goods only as they are needed.
  3. Lean Supply Chain: Prioritizes efficiency by eliminating waste and streamlining processes.
  4. Kanban: A scheduling system that helps manage workflow and inventory in a just-in-time framework.

Analysis and Detail

  1. In less predictable environments, customer demands and market conditions can change suddenly.
  2. Agile supply chains are designed to quickly adapt to these changes, providing responsiveness and flexibility.
  3. Just-in-time and lean strategies, while efficient, may struggle in less predictable environments due to their reliance on stable demand patterns.
  4. Kanban, being part of the just-in-time approach, also may not perform optimally in highly variable conditions.

Verify and Summarize

After reviewing the characteristics of each supply chain strategy, the Agile supply chain clearly stands out as the most suitable for less predictable environments, as it allows companies to respond rapidly to changes in demand.

Final Answer

A. Agile is the needed supply chain strategy in less predictable environments.

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