Session Overview

The following topics will be covered in this session: 

1. Introduction to Supply Chain

2. Importance of Supply Chain

3. Constituents of a Typical Supply Chain

4. Demand Flow and Product Flow in Supply Chain

5. Achieving Strategic Fit through Supply Chain

6. Drivers of a Successful Supply Chain

7. Role of a Supply Chain Manager

Session Objectives:

1. Identify the scope of supply chain management in a business.

2. Recognise the importance of supply chain management in creating value for an

organisation, which, in turn, would enable the management in achieving the right strategic fit.

3. Analyse the factors that influence the creation of a successful supply chain.

4. Identify the roles and responsibilities of a typical supply chain manager

What is a Supply Chain?

 

Apple Inc. is a name that does not need any introduction. 

When it comes to supply chain, Apple has consistently been ranked as No. 1 in the
world by Gartner. 

Why is it that?
 Let’s try to find the answer to this question through this case study on Apple.

During this course, Apple will be revisited many times from the perspective of the
supply chain. We recommended you to go through the case for a better
understanding of Apple’s supply chain examples being talked about at multiple
places during this course.

A supply chain is a mechanism through which raw materials from the suppliers are
first converted and then placed in the hands of the customers in the form of
finished goods.

Let’s study the supply chain by understanding how a product flows from the
supplier to the customer. However, it is important to note that if a product reaches
the customer, then it means that there was a demand for it. So, let’s also understand
how this demand information flows

As you learnt in the video above, there are two distinct types of flows within a
supply chain, which are as follows:

1. Product flow: From manufacturer to customer

2. Demand flow: From customer to manufacturer

A typical supply chain involves a variety of stakeholders. A supply chain includes

all or some of the following stakeholders depending on the type of industry the
organisation operates in:

 Customers

 Retailers
 Wholesalers / Distributors

 Storage locations

 Manufacturers

 Vendors or suppliers

Now that you are aware of the mechanism of the supply chain, in the next segment,
you will learn about Apple: an organisation that is touted to have the best supply
chain.

However, before proceeding to the next segment, let's test your understanding of
the concepts covered so far by attempting a few assessment questions

Product Flow
Keeping in mind the concept of product flow, what is the correct order of product
flow in the following scenario?

1. Maruti Suzuki Ciaz ZXi is delivered to the showroom centre. 

2. Spare parts and engines are supplied to the Maruti Suzuki manufacturing
plant.
3. The manufacturing of Maruti Suzuki ZXi is undertaken at the plant.
4. Customers visit the showroom to purchase Maruti Suzuki ZXi.

4, 1, 3, 2

1, 4, 3, 2

2, 3, 1, 4

✓ Correct
Feedback:

Correct! The product flow is from the manufacturer to the customer.

3, 1, 2, 4
 Demand Information Flow
Keeping in mind the concept of demand information flow, what is the correct order
of demand information flow in the following business scenario?

1. Distributor gives an order of 800 steel bars to the manufacturer to fulfil orders
from 10 retailers.
2. Retailer gets an order of 100 steel bars. 
3. Manufacturer orders 100 tons of iron ore to a mining company.
4. Since the retailer has only 20 steel bars in inventory, it gives an order to the
distributor to supply 80 steel bars.

1-2-3-4

2-3-4-1

2-4-1-3

✓ Correct
Feedback:

Correct! The demand information flow is from the customer to the manufacturer.

3-1-4-2

The Best Supply Chain in

The World
In the upcoming video, Shyam will walk you through the entire supply chain
process. You will also learn how Apple managed to stay at the No. 1 position in
the supply chain industry

In the video above, you got an understanding of the basic concept of the supply
chain. To understand this better, let’s break down a supply chain into the following
smaller elements:
 Making and delivering the right product

 In the right condition and quantity

 At the right time

 To the right customer

 At the lowest optimal cost with consistency

In the next segment, you will go through the supply chain value creation process

Achieving Goals and Value

Through Supply Chain
Every process in an organisation has certain goals to achieve. The process is said to
be performing well if it is meeting its specific goals.

What then are the goals that a supply chain plans to achieve?

Let’s hear from our experts on what they have to say about it

Note: From timestamp 1:22 to 1:36, the speaker mentioned that "All pull processes
are performed in anticipation of customer demand" and "All push processes are
performed in response to customer demand". These statements are interchanged
and their correct order is provided in the text below.

 
 As you learnt in the video above, supply chain is necessary to achieve certain
organisational goals, which are as follows:

 To understand the demand for the products 

 To plan the supply and availability of the products 
 To deliver customer service

Supply chain planning process is divided into smaller activities. These activities
are carried out to have an effective and efficient supply chain. These activities are
as follows:

 Demand planning: It refers to the process of forecasting or predicting the

demand for products to ensure that they can be delivered to satisfy customer
needs. While planning for demand one must take into account the following:
1. Pull Processes: Pull processes are performed in response to customer
demand. A pull process happens when the market asks for supply and the
manufacturer delivers the supply.
2. Push Processes: Push processes are performed in anticipation of
customer demand. A push process happens when the manufacturer pushes the
product out into the market, regardless of the market wanting the supply. 

Demand planning will be discussed in detail in the next session.

 Supply planning: It refers to the entire planning process including distribution,

manufacturing and procurement operations, in accordance with the demand forecasts,

considering capacity constraints and material availability.

Supply planning will be discussed in detail in a separate session.  

 
 Supply chain is a business aspect that functions with a singular objective of
creating value for your business. 

In the next video, you will learn about a framework used for creating value for a
business with the help of supply chain

In the video above, you learnt about the four pillars of value creation within a
supply chain, which are as follows:

 Effectiveness
 Efficiency
 Relevancy
 Sustainability

Now that you have understood what a supply chain is, what its goals are and why it
is important for an organisation, in the next segment, you will understand how a
supply chain is formed.

Before you dive deep into the supply chain, it’s time for you to test your
understanding of the concepts covered so far by attempting the following
assessments

Customer Service
According to you, which of the following two supply chains, operating in an online
grocery delivery industry, is better at providing customer service?

The company collects fresh supply of raw vegetables once every three
days from the farmers, and then, it fulfills the customer orders on a daily
basis.

The company collects fresh supply of raw vegetables every day from the
farmers, and then, it fulfills the customer orders on a daily basis.

✓ Correct
 Feedback:

Even though the cost associated with the procurement of vegetables will be high in
this case (as the collection process happens on a daily basis), the company is able to
provide fresh vegetables at the customer’s doorstep, thereby delivering better
customer service.

Efficiency in Supply Chain

Taking into consideration the supply chain value creation model that you learnt
earlier, which of the following, according to you, would not lead towards increasing
the efficiency in the supply chain?

Reduction in delays

Low capacity utilisation

✓ Correct
Feedback:

Correct answer! Low capacity utilisation would lead to an inefficient supply chain.

Optimum inventory

Cost optimisation

Value Creation
Consider the following supply chain operations of a cloud kitchen company.

1. Procurement of raw vegetables is done from nearby vegetable retailers on a

bi-weekly basis.
2. Procurement of highly-perishable items such as raw meat is done from nearby
poultry shops that are open 24x7 on a bi-weekly basis.
3. Once the food is prepared, the delivery service team picks up the order, places
it in their backpacks and delivers it to the doorstep of the customer.

Which of the following operation is not suitable in creating a better value for the
customer and the company?
Procurement of raw vegetables can be done from the central city
wholesale market.
 Procurement of highly-perishable items such as raw meat can be done
from nearby poultry shops only when such orders are received, thereby
reducing the inventory holding cost and risk of rotten food. This also
translates into serving fresh meat to the customers every time they order.

Rather than delivering orders as and when they arrive, the company
should aggregate these orders and deliver then only twice a day.

✓ Correct
Feedback:

While order aggregation will definitely reduce the transportation cost, it will lead to a
reduction in orders as the customers usually tend to order food as and when they
need it and not in advance.

The delivery service team can use temperature-controlled food

containers to deliver the orders (rather than putting them in their
backpacks).

Sustainability in Supply Chain

Which of the following is not a relevant question for an environment impact
assessment (EIA) of a baking business?
Are the ovens energy efficient?

How much of the supplied cream is used in the business and how much
perishes?

How many supervisors are there?

✓ Correct
Feedback:

Correct! EIA evaluates the environmental impact of a business or a process. The

number of supervisors isn’t the most relevant parameter to influence the
environment directly.

How much plastic and cardboard is used in packaging of the cakes?

 What Does a Supply Chain
Include?
The supply chain mechanism related to product and demand information flow is
possible only because of the inclusion of a set of specific business processes. These
business processes are integrated with each other.

Let's watch the next video to learn what these business processes are and how to
integrate these processes within a supply chain

As you learnt in the video above, the different business processes of a typical and
effective supply chain are always integrated. This integration occurs through the
following set of interdependent processes:

 Facility network
 Material handling equipment (MHE)
 Transportation
 Inventory
 Order management

The single biggest advantage of the integration of these processes is the continuous
interaction between them which ensures that the integrated supply chain is capable
of managing all the performance parameters.

Now that you have understood the business processes integrated into a supply
chain, let's understand how these processes flow across different touchpoints
within the supply chain
 As you learnt in the video above, a typical supply chain consists of certain
touchpoints, which are as follows:

1. Supplier 
2. Factory
3. Customer

You also analysed how to arrange different business processes along the three
touchpoints of a supply chain with the help of the example of Apple Inc.

Now that you have understood what a supply chain is, what its touchpoints are and
how it creates value for your business, the next question that arises is: 

 Why do organisations need to have a supply chain strategy in place to run

their business?

You will find the answer to this question in the next segment.

However, before that, let’s test your understanding of the concepts covered so far
by attempting the following assessments

Supply Chain Touchpoints

Consider Hezenko Phlorensi Classic Watch Ltd situated in Switzerland. The company
sells an exclusive range of Swiss watches and caters only to the adjacent European
nations with an average selling price of $1,00,000. The company manufactures only
100 pieces every year. 

For the distribution of its watches, the company has two options to choose from.
Which option do you think will provide more control to Hezenko Phlorensi Classic
Watch Ltd over its supply chain?

The company can transport the watches directly to its stores through
armoured vehicles owned by the company itself.

✓ Correct
 Feedback:

Correct answer! Higher degree of control is possible only when the company directly
transfers the watches from its manufacturing plant to its stores without taking any
stop in between.

The company can use the services of a third party logistics provider
which excels in the transportation of luxury products.

Supply Chain Touchpoints

Consider ABC Steels Pvt. Ltd. The company operates in a B2B set-up. It takes iron in
the form of raw material required for manufacturing of steel from two iron ore mines,
Heavy Iron Ltd and Solid Iron Ltd. and manufactures EN 10025 grade steel bars from
raw iron. EN 10025 grade steel is required in the real estate sector. ABC Steels
transports these steel bars first through cargo rails and then through large cargo
ships to Europe and USA, where it caters to two big real estate firms, Dream Homes
Pvt. Ltd and Classic Offices Ltd.  

Taking into consideration the concepts of supply chain touchpoints that you learnt,
classify which entity or process falls under which of the following three buckets.

1. Supplier
2. Factory/Manufacturing
3. Customer

Suggested Answer
Categorisation of the entities and processes given in the example is as follows:

1. Supplier: Heavy Iron Ltd and Solid Iron Ltd

2. Factory/Manufacturing: 

 ABC Steels Pvt. Ltd. manufactures EN 10025 grade steel. Manufacturing is

done in-house.

 Transportation through rails and ships to USA and Europe

3. Customer: Dream Homes Pvt. Ltd and Classic Offices Ltd

Why is Supply Chain
Strategy Needed?
 

The bottom line for any business is profit. Profit is one of the most valuable
objectives for any organisation to be achieved. Supply chains also work with this
very objective in mind, however, sometimes organisations succeed in achieving
this objective while other times they fail. 

In the next video, Prof. Nikunj gives examples of companies that have succeeded
and others that have failed through their supply chain

In the video, you saw the examples from two organisations, Gateway and Apple.

Both the companies operate in the same industry, but they had completely different
supply chain strategies, Gateway decided not to have any inventory while Apple
decided to have its own inventories. 

Initially, Getaway succeeded, however, as time progressed, Apple raced way ahead
of Gateway. 

Why did this happen?

The answer is straightforward. Organisations need to have a supply chain

strategy that suits the kind of business and industry that they are operating
in. 

This simple mantra helps organisations in achieving the right strategic fit.
 Let’s hear from Prof. Nikunj as he explains this in detail

As you learnt in the video above, the two different types of strategies developed by
organisations are as follows:

1. Competitive strategy
2. Supply chain strategy

An organisation is said to achieve strategic fit only when the goals of these two
strategies are aligned with each other. 

In the video, you also learnt about a stepwise framework used by organisations for
achieving the best strategic fit. The framework consists of the following steps:

1. Understand the customer and supply chain uncertainties: There are

certain products that have high demand certainty, whereas other products have a lot
of uncertainties in their demand.
2. Understand the organisation’s supply chain capabilities: Depending on
the type of product an organisation supplies and the industry in which it operates, it
can opt for either a highly efficient supply chain or a highly responsive supply
chain.
3. Achieve strategic fit: Organisations involved in selling products that have
demand certainties should have a highly efficient supply chain, whereas
organisations that are involved in selling products that have high demand
uncertainty should have a highly responsive supply chain.

Based on the strategic fit framework, the two types of supply chain strategies that
can be achieved by an organisation are as follows:

1. Efficient supply chain strategy: This strategy ensures that cost is kept at

the minimum. It mostly suits products with low demand uncertainty.
2. Responsive supply chain strategy: This strategy ensures that the product is
available to the customers at the earliest. It mostly suits innovative products with
high demand uncertainty.

Let’s understand the difference between efficient and responsive supply chains as
well as the scenarios where they can be used

In the video above, you learnt how organisations such as Walmart, Big Bazaar, 7-
Eleven and Easyday structure their supply chain strategies to achieve the desired
strategic fit.

Once supply chain strategies are structured, they have to be implemented at an

organisational level. 

As you learnt in the video above, there are certain drivers of a supply chain that
play an important role in implementing the supply chain strategy in the most
optimal manner, which are as follows:

 Inventory: This refers to the raw material, work in progress (WIP) or

finished goods within a supply chain. It also covers the inventory policies that are
set by the organisation.
 Facilities: This refers to the places where inventory is either stored,
assembled or fabricated. An organisation’s production sites and storage sites fall
under this category.
 Transportation: This refers to the movement of inventory from one point
to another in a supply chain.
 Information: This refers to the data and analysis of the inventory, facilities
and transportation throughout a supply chain.
 Sourcing: This refers to the set of functions that are performed by an
organisation in-house and the set of functions that are outsourced by it.
 Pricing: This refers to the prices that are associated with the goods and
services provided by the organisation.

You saw how Walmart and Big Bazaar use the above-mentioned drivers to
implement a supply chain strategy and also understood the key differences in their
strategies.

Over the past many years, supply chain strategy has evolved a lot and
organisations are finding new ways to differentiate themselves and succeed
through their supply chains. You will learn about this in the next segment.
However, before proceeding to the next segment, let's test your understanding of
the concepts covered so far by attempting the following assessment

Demand Uncertainity
Categorise the following products on the basis of their demand uncertainty (high or
low).

1. 4K Android TV
2. Wheat flour
3. Filter coffee 
4. Aircraft engines

Demand uncertainty (high) - 1, 2; Demand uncertainty (low) - 3, 4

Demand uncertainty (high) - 1, 4; Demand uncertainty (low) - 2, 3

✓ Correct
Feedback:

Demand uncertainty is high for products that are highly innovative in nature. These
are the products that will become obsolete within some time due to better
innovation. Demand uncertainty is low for products that are not highly innovative in
nature.

Demand uncertainty (high) - 1; Demand uncertainty (low) - 2, 3, 4

Demand uncertainty (high) - 2, 3; Demand uncertainty (low) - 1, 4

 Achieving Success
Through Supply Chain
Let’s now understand how companies have succeeded by differentiating
themselves through their supply chain strategy alone. Kinchit will demonstrate
how supply chain has proven to be a differentiating factor for organisations with
the help of two examples. You will go through the example of Zara, the Spanish
apparel retailer specialising in fast fashion, followed by the example of the unique
supply chain model of the Mumbai dabbawalas

In this video, Kinchit talked about one of the world’s biggest fast-fashion retailers,
Zara. Surprisingly, Zara has a product lead time of about one week, whereas
competitors have a lead time of close to six months. Some key points to remember
about Zara’s supply chain are as follows:

1. Zara adopted a strategy to keep all of the production in-house, which helped it reduce

the product lead time. Zara also developed a robust ecosystem of having all its suppliers in its

vicinity.

2. Zara's strategy is to produce in small lot sizes and maintain a limited inventory of one

product type. The benefits of this strategy are two-fold:

1. It does not have to block its working capital in the form of inventory.

2. The chances of inventory getting redundant with the launch of a new product

are reduced.
You also learnt about the unique supply chain model of Mumbai dabbawalas.
Kinchit explained how a coding system is used to achieve an error rate of one in a
million deliveries.

However, there have been instances where an organisation has to implement both
the aspects of a supply chain strategy, i.e. cost-efficiency as well as responsiveness,
to cater to different business verticals within the organisation. Let’s understand
how it is done in the next video

In the video, you learnt that even though Amazon uses a cost-efficient supply chain
in its normal course of business, it has to incorporate responsive supply chain
strategy in some parts of its business to cater to the same-day delivery audiences.

As an add-on, you can watch the following video on YouTube where CNBC takes
a deep dive into Amazon's same-day delivery process.  

Now that you know how a supply chain strategy is developed and implemented by
organisations, in the next segment, you will learn about the role a supply chain
manager in an organisation.

Let’s attempt an assessment question to reinforce your understanding of the topics

covered in this segment
 Types of supply chain strategies
From the scenarios provided below, which one do you think is better suited to have a
cost-efficient supply chain strategy and which one is better suited to have a
responsive supply chain strategy.

1. The electronic equipment manufacturing company X, situated in California,

having a market in Germany, has outsourced its sales and marketing operations to a
third party in New York and has kept the manufacturing in-house within California
2. The electronic equipment manufacturing company Y, situated in California,
having a market in Germany, has kept sales and marketing in-house and has
outsourced the manufacturing part to a third party in China

Cost-efficient supply chain - Company X; Responsive supply chain -

Company Y

Cost-efficient supply chain - Company Y; Responsive supply chain -

Company X

✓ Correct
Feedback:

China is renowned in manufacturing low-cost electronic equipment. The labour cost

in China is also comparatively low when compared to the US.  The US is renowned
for its innovation, including technological innovation.

Role of a Supply Chain

Manager
While a supply chain is considered to be huge and requires teams with multiple
members working closely with each other to ensure the successful management of
the supply chain, there are certain roles and responsibilities that are specific to a
supply chain manager. Let’s hear from our expert Shyam as he explains these roles
and responsibilities
 As you learnt in the video above, successful supply chain managers have to
be proficient in their subject of expertise.

In addition, the supply chain manager should be able to build and maintain key
relationships. To summarise, a supply chain manager is expected to:

 Plan and implement the overall supply chain strategy

 Collaborate with Sales, Operations and Customer Service teams

 Determine key performance indicators (KPIs) within the supply chain

 Suggest solutions for improving the supply chain process

 Identify process bottlenecks and implement solutions in a timely manner

 Ensure continuous training of supply chain personnel

 Work with Finance, Sales and Manufacturing teams to determine the best vendors

and distributors to partner with

 Build and maintain a good relationship with the vendors

Now that you have got an understanding of the concept of a supply chain, in the
next couple of sessions, you will gain an understanding of the demand and supply
planning processes within a supply chain.
But first, attempt an assessment question to reinforce your understanding of the
topic covered in this segment

Role of a Supply Chain Manager

Consider one of the top component suppliers for Apple Inc. The supplier provides
the best material quality in the industry, and thus, Apple has been partnering with
them for many years.

However, due to increasing demand from other mobile phone manufacturers such as
Samsung and Oppo, whenever a new flagship phone is released by these
competitors, the supplier falls short of its commitment to supply to Apple.
 List down two steps that can be taken by Apple’s supply chain managers to mitigate
this issue and ensure a continuous supply of these high-quality components.

Suggested Answer
The following steps can be taken by Apple:

1. Apple can renegotiate with the current supplier to reserve some of their
assembly lines only for Apple, thereby ensuring continuous supply in the future.
2. Signing exclusivity deals with other similar suppliers who are supplying the
same component in the industry. The quality will take a hit; however, as has been
done by Apple with other suppliers, it would have to invest heavily in these suppliers
in building up their capabilities and to bring the quality up to Apple’s standard.

Answer the following questions to test your learnings from this session. Note that
these questions will not be graded

Push and Pull strategies

Statement 1 - Every year, a factory in China begins manufacturing ornaments
required for Christmas holiday season in September.

Statement 2 - Dell computers start assembling a computer post receiving an order

from a customer.

How are the two strategies different?

Statement 1 - Push strategy; Statement 2 - Push strategy

Statement 1 - Push strategy; Statement 2 - Pull strategy

✓ Correct
Feedback:

A push supply chain pushes material both in production and distribution based on
projected demand. Under this system, companies have predictability in their supply
chains.

In a pull strategy, products enter the supply chain when customer demand justifies it.
With a pull strategy, companies avoid the cost of carrying inventory that may not sell.
The risk is that they might not have enough inventory to meet demand if they cannot
ramp up production quickly enough.
 Statement 1 - Pull strategy; Statement 2 - Push strategy

Statement 1 - Pull strategy; Statement 2 - Pull strategy

Type of Flow
Rakesh visits a Tata Motors showroom to buy Tata Harrier. He has already test-driven
the vehicle, as his friend Suresh bought the car from the same showroom a few
weeks ago.

However, due to huge demand for the car, it has been out of stock in the showroom
for the past few days. Thus, Rakesh had to leave the showroom without buying the
car.

As per Rekha, the sales person at the Tata Motors showroom, there are other people
similar to Rakesh who wanted to buy the car but could not do so due to its
unavailability. She periodically prepares a list of such buyers and shares it with the
top management.

Which type of flow is this?

Demand information flow

✓ Correct
Feedback:

Correct answer! Rekha is taking up the demand information that she has received
from the buyers and sending it to the top management to ensure that proper supply
is maintained in the future.

Product flow

Both of the above

Role of a Supply Chain Manager

Every year in the month of December, Hyundai Motors launches a scheme, wherein it
gives a lot of add-ons in the form of car accessories (worth ₹1,000,000– ₹2,00,000) for
free to sell its existing inventory of cars. This is done because the car models usually
get updated once every year. This offer runs from 1 December  to 31 December
every year.
At one such instance on 22 December, while the booking of cars had already
happened, the cars did not arrive at the respective showrooms for the customers.
Upon introspection, it was found that the supplier for add-on car accessories was
demanding a higher per unit price than what was written in the contract. Hyundai
has been working with this supplier for almost a decade.
Which of the following measures should be taken by Hyundai’s supply chain
manager?
Pay the demanded price to the supplier and pass on the additional costs
to the customers

Scrap the contract with the supplier and source the accessories from a
new supplier

Try to negotiate with the supplier on coming up with a per unit price
that is agreeable to both the parties

✓ Correct
Feedback:

Correct answer! The supply chain manager should negotiate and try to understand
why the supplier has taken such a drastic step. Since the relationship of the company
with the supplier is old, there is a possibility that the supplier might have a genuine
reason to increase the cost, thereby putting their decade-old relationship in
jeopardy. The supply chain manager should then come up with a cost per unit that is
agreeable to both parties.

Do not give in on the last-minute demand from the supplier and refund
the money of booked cars back to the customers 

Graded questions
Note that the questions given below will be graded

Push and Pull processes

Consider TwoPlus, a new company entering into the mobile phone selling business.
The company releases only one device every year with top-of-the-line specifications.
However, being a new company, the company has decided not to invest in inventory
at all. It takes pre-orders from its customers once a week. It produces only so much
quantity that is able to fulfill these pre-orders and then delivers it to the customers.
Determine which of the following processes is followed by TwoPlus in this example.

Push process of demand fulfillment

Pull process of demand fulfillment

✓ Correct
Feedback:

Correct answer! Pull process is when the manufacturer supplies the product to the
market only when the market asks for it. In this example, TwoPlus supplies the mobile
phones only when it has received information from the market that its product is
needed in the market.

Sustainable supply chain

Taking into consideration the supply chain value creation model that you learnt
earlier, which of the following situations, according to you, is not an example of a
sustainable supply chain?
Amul using CNG trucks instead of diesel trucks for transportation of
milk.

To ensure product safety, e-commerce companies using plastic

wrappings to ship their products. 

✓ Correct
Feedback:

Correct answer! Even though using plastic wrappings on the products definitely helps
in their safety, plastic has an adverse impact on the environment due to its non-
degradable nature.

HUL using solar power to run manufacturing factories instead of using

electricity from coal power plants.

Xiaomi selling refurbished products that were returned to it by the

customers after the initial purchase due to some fault rather than
discarding them as waste.
 Type of supply chain strategy
Match the following products with the type of supply chain strategy that should be
followed.

1. Toothpaste
2. Luxury cars
3. Shoes designed for top athletes
4. Instant noodles
Efficient supply chain - 1, 2; Responsive supply chain - 3, 4

Efficient supply chain - 1, 4; Responsive supply chain - 2, 3

✓ Correct
Feedback:

Efficient supply chains are suited for products that have low demand uncertainty,
whereas responsive supply chains are suited for products that have high demand
uncertainty.

Efficient supply chain - 1, 3; Responsive supply chain - 2, 4