ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ikea ensures that their suppliers of lumber always replant a batch of trees for every acre they cut down so that there will be lumber available in the future. Ikea is practicing:
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Green supply chain
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Lean supply chain
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Sustainable supply chain
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Mean supply chain
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Explanation:
Detailed explanation-1: -IKEA has concentrated its strategy on maintaining profitability through a low-cost business model, which is its core competency. This model enables IKEA to assess the real cost of a product or process, including design, sourcing, and operating costs. It has thrived on keeping low costs while expanding its operations.
Detailed explanation-2: -Every time the product is shipped, moved, and loaded, it costs money. The fewer times someone moves or touches the item, the fewer costs are associated with it. IKEA saves costs with this guiding principle to minimize touches because it doesn’t have to pay the customer to retrieve the furniture and take it home.
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