Question

Which type of supply chain structure tends to minimize the risk of catastrophic supply chain quality risks, similar to the kind Mattel experienced with lead paint in toys:__________.
A) A relational value chain
B) A price driven market mechanism
C) A vertically integrated supply chain
D) A modular value chain

Answer 1

Answer:

The correct answer is the option C: A vertically integrated supply chain.

Explanation:

To begin with, a vertically integrated supply chain is the one that the companies choose in order to have a higher management over the whole supply chain and that is because the principal company who uses that strategy is the one who will give the orders and manage the other firms of the supply chain with the purpose of establishing better results by avoinding catastrophic risks that can happen. That is why, a vertically integrated supply chain tends to minimize the risks inside the chain.