In the never-ending quest for production efficiency and profitability, companies look toward their supply chain for additional improvement opportunities. Renowned Supply Chain subject matter expert, Dr. Hau Lee, explained that a stable supply chain can be developed by reducing uncertainty. The following chart, demonstrating Dr. Lee’s Uncertainty Framework, is reproduced from the course text (attached).
Companies should work to move from the right side of the chart to the left side, and from the lower to the upper portion, if they are to remove uncertainty from their supply chain processes.
For this activity, respond to the following:
- If a company’s products are considered innovative and their supply base is stable, would its supply chain be considered efficient, responsive, agile, or risk-hedging? Explain the reasons for your selection.
A minimum of one reference is required.