UNIQUE CODE: 639995
, SECTION A: QUESTION 1
QUESTION 1.1
When an organisation wants to improve their supply chain responsiveness, they need to _
[a] reduce supply chain relationships.
[b] use business process re-engineering.
[c] establish centralised warehouses.
[d] increase new product design cycles
Answer: Option (b) - use business process re-engineering.
Explanation: When an organization wants to improve their supply chain responsiveness,
using business process re-engineering is a suitable approach. Business process re-
engineering involves analyzing and redesigning the existing processes to achieve significant
improvements in performance, efficiency, and effectiveness. By rethinking and restructuring
supply chain processes, organizations can streamline operations, reduce bottlenecks, and
enhance responsiveness to customer demands.
Reasons for the other options being incorrect:
Option (a) - Reduce supply chain relationships: This option is incorrect because
reducing supply chain relationships may limit collaboration and hinder the flow of
information and resources between different entities in the supply chain. This could
potentially reduce responsiveness rather than improve it.
Option (c) - Establish centralized warehouses: This option is incorrect because
establishing centralized warehouses may improve inventory management and cost
efficiency, but it may not directly address supply chain responsiveness.
Responsiveness is more related to the agility and speed of the processes, rather than
the physical location of warehouses.
Option (d) - Increase new product design cycles: This option is incorrect because it
pertains to new product development rather than supply chain responsiveness.
While innovation and new product design may be important for competitiveness, it
is not directly associated with improving the responsiveness of the supply chain.
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