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Question 116 - CSCP discussion

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Implementation of supply chain applications based on which of the following technologies is most likely to have the lowest fixed costs?

A.
Best of breed packages
Answers
A.
Best of breed packages
B.
One integrated package
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B.
One integrated package
C.
Service-oriented architecture
Answers
C.
Service-oriented architecture
D.
Software-as-a-service
Answers
D.
Software-as-a-service
Suggested answer: D

Explanation:

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.

'Supply Chain Management: Strategy, Planning, and Operation' by Sunil Chopra and Peter Meindl.

APICS Dictionary, 16th edition.

asked 16/09/2024
Jeff Silverman
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