Course › 1.8 Supply Chains › Free response
Free response · 1.8 Supply Chains
Exam-style concept-application task: apply the topic to a new business scenario. Suggested time 12–13 minutes.
FRQ 3 — Concept application (3 points)
Orbit Lenses makes a specialty contact lens that corrects a rare eye condition and competes on quality; patients and doctors pay a premium for precision. Its lenses are molded in its own small facility by technicians, using a polymer bought from a single supplier in one overseas country. That country has recently experienced political unrest, and the supplier has twice delivered late. A second polymer supplier in Orbit's home country charges 25% more but has an excellent delivery record.
(A) Identify the production process Orbit uses and ONE reason it fits the business. 1 pt
(B) Explain how the current polymer supplier creates a risk for Orbit's competitive advantage. 1 pt
(C) Recommend whether Orbit should switch to the domestic supplier, and explain using the framework's supplier considerations. 1 pt