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Question 2 3 One of the key factors and hallmarks of Acme's supply chain system is likely to be: Lower component and material inventory levels

Question 23
One of the key factors and hallmarks of Acme's supply chain system is likely to be:
Lower component and material inventory levels
High machine and equipment utilization
Improved customer service response to rapidly changing demands
Improved product quality from the suppler
Lower transportation costs
The following case applies to Questions 24-26:
Acme currently has four plants - one each in China, India, Ireland and the US. One of
Acme's major product lines is a Make-to-Stock product. Acme currently produces this
product in one plant in China and ships it globally to all its markets. Recently, however,
Acme has become concerned about the potential of disruption at the China manufacturingQuestion 22
Acme Manufacturing is considering re-orienting its supply chain for a major line of low-cost
measuring instruments for the retail market. The current supply chain stages can be
depicted as follows:
Some of the key supply items for this line have long lead times. However, in this market,
cost is a critical element as there is high competition in the market. Historically, Acme has
run its supply chain for this product line based on forecasted demand. The forecast is
developed from an analysis of average sales over the past 6-month period.
Acme's supply chain design can best be characterized as a:
Job Shop
Pull system
Push system
Make-to-Stock system
Engineer-to-order system

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