Implementation of supply chain applications based on Software-as-a-Service (SaaS) is most likely to have the lowest fixed costs because:
No Infrastructure Investment: SaaS eliminates the need for significant upfront investment in hardware and infrastructure.
Subscription Model: SaaS is typically offered on a subscription basis, spreading costs over time rather than requiring a large initial capital expenditure.
Scalability: SaaS solutions can be easily scaled up or down based on demand, providing flexibility and cost efficiency.
Maintenance and Updates: The service provider manages maintenance and updates, reducing the need for internal IT resources and associated costs.
In contrast, best of breed packages (A), one integrated package (B), and service-oriented architecture (C) often require more substantial initial investments in technology and infrastructure.
References
"Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl.
APICS Dictionary, 16th edition.
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