An organization with a cost leadership strategy is considering choosing a supply partner. What is the trade-off that this organization needs to consider?
A.
A trade-off between cost margins and compensation claims
B.
A trade-off between cost efficiency and responsiveness
C.
A trade-off between digital platforms and Lean processes
An organization with a cost leadership strategy must balance cost efficiency with responsiveness. This trade-off involves economies of scale within the supply chain while ensuring that logistics systems maintain cost margins without causing delays due to excessive focus on economies of scale. [P-31]
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