Question: Question 3 3 In an attempt to create a one size fits all low - cost supply chain for all of their clothing products, Kai
Question
In an attempt to create a "one size fits all" lowcost supply chain for all of their clothing products, Kai and Thea decided to source all their clothing products from Vietnam instead of Ohio. The average hourly labor rate in Vietnam is $ per hour versus $ per hour in Ohio. No changes to transport capacity or textile import quotas were made in conjunction with this change of supplier. KTs clothing line includes standard items such as white socks and tshirts and specialty items such as customized flipflops and autographed swimwear.
Which of the following statements is true based on this scenario?Supply replenishment lead times and variance will likely increaseKT's supply chain will now be much more responsive to changes in demandForecast accuracy will increase due to the longer planning time horizonThis strategy is most appropriate for the customized products, but not for socks and tshirts
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