Question: Acme's COO is considering implementing a Pull-based system for one of its major consumer product lines. This product line is made by an autonomous Business

Acme's COO is considering implementing a

Acme's COO is considering implementing a Pull-based system for one of its major consumer product lines. This product line is made by an autonomous Business Unit with its facilities and operations. However, they share the Distribution network with the rest of Acme's Business Units. Many of the key components are sourced from Vietnam and China, with sub-assemblies done in Shenzhen and final assembly in Texas. The cumulative lead times from the first supply to Acme's distribution facilities are long and demand at the retail level is variable. Acme has, in the past, concentrated on maintaining a lean supply chain with as much of a just-in-time" operation as possible to maintain low inventory levels. What of the following is a major risk or disadvantage of Acme implementing a Pull-based system A short-term supply disruption in Vietnam or China could result in inventory stockouts It will be difficult for Acme to distribute its supply and build redundancy into its supply base The Vietnamese supplier could have a quality problem The Texas unit may have too much inventory as a result of the supply chain operations The "lean" supply chain will allow Acme to respond to changing demand patterns The Chinese supplier may take the IP and enter the market

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!