Characteristics of Efficient, Responsive, Risk-hedging and Agile Supply Chains - Assignment Example

Responsive Supply Chain: It is characterized by small production lead-times, little set-up fees, and a small size of consignments to permit a responsive firm to adapt quickly to market demand. However, this is associated with a higher unit cost.Risk-Hedging Supply Chain: It is distinguished by high supply and low demand uncertainty, cost efficiency, and hedging the risk of supplier distractions. It also has a functional product type and competitive on cost and flexibility. This form of the supply chain has low responsiveness to market demand and uses a relation-based approach toward suppliers, (Jacobs, & Chase, 2012).

Agile Supply Chain: It is highly sensitive to the market and able to read and respond to real market demand. Agile supply chains have extensive sharing of information between suppliers and buyers regarding supply and demand and hence, develop a virtual supply chain where physical stocks are adequately replaced with information, (Hoek & Ebrary, 2006).No, a company cannot apply both responsive and efficient supply chains. This is because responsive and efficient supply chain strategies have conflicting objectives, for instance, in terms of cost and lead-times.

Whereas an efficient supply chain has a low-cost strategy and long-term forecast, the responsive supply chain has a high unit cost and short-term forecasts.Yes, management can apply both agile and risk-hedging supply chains. This is because agility works in environments with high demand and supply risks. Agile approaches unite strengths of responsive and risk-hedging approaches to respond to the uncertain demand of customers while minimizing the risk of supply disruption, (Zanjirani Rezapour & Kardar, 2012).