Quick response results in the manufacturer making a lower profit in the short term if all else is unchanged. True or False?
Understand the Problem
The question posits that a quick response strategy by a manufacturer necessarily leads to lower short-term profits, assuming all other factors remain constant. We need to evaluate the truthfulness of this statement, considering potential benefits of quick response (e.g., reduced inventory costs, increased customer satisfaction) and whether those benefits could offset potential cost increases introduced by quick response.
Answer
True.
The statement "Quick response results in the manufacturer making a lower profit in the short term if all else is unchanged" is True.
Answer for screen readers
The statement "Quick response results in the manufacturer making a lower profit in the short term if all else is unchanged" is True.
More Information
Quick response (QR) in supply chain management prioritizes speed and flexibility to meet changing customer demands. While it can increase costs in the short term, it often leads to higher profits in the long term due to increased customer satisfaction and reduced inventory.
Tips
A common mistake is to only consider the short-term impact on profit. Quick response strategies often have long-term benefits that can outweigh the initial costs.
Sources
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