Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 APJMMR, Vol.3 (6), JUNE (2014) Online available at indianresearchjournals.com 79 MANAGING TRADE-OFF IN AUTOMOBILESUPPLY CHAINS - RESPONSIVENESS Vs EFFICIENCY DR. R. VENKATESHWAR RAO*; GANESH MERGU** *PROFESSOR- DEPT. OF BUSINESS MANAGEMENT COLLEGE OF BUSINESS AND ECONOMICS DILLA UNIVERSITY- ETHIOPIA **LECTURER- DEPT. OF BUSINESS MANAGEMENT COLLEGE OF BUSINESS AND ECONOMICS DILLA UNIVERSITY- ETHIOPIA ABSTRACT The automobile supply chain can be either responsive or efficient in practice. A responsive supply chain is distinguished by short production lead-times, low set-up costs, and small batch sizes and minimum inventories that allow the responsive firm to adapt quickly to market demand, but often at a higher unit cost. An efficient supply chain is distinguished by longer production lead-times, high set-up costs, and larger batch sizes and high volumes of inventories that allow the efficient firm to produce at a low unit cost, but often at the expense of market responsiveness. Aftermarket performance is also a key factor in the consumer’s choice of vehicle and is a strong driver of brand loyalty. The quality, availability and cost of service parts are critical components in the consumer’s product and service experience with their vehicles. The present article examines the performance of automobile supply chains with responsive Vs efficiency dimensions. KEY WORDS: After Market Supply Chain-- Efficient Supply Chain- Responsive Supply Chain- Stock Levels-Supply Chain Metrics- supply chain Trade-Off. INTRODUCTION: Supply Chainis theall the necessary activities required for creating and delivering products and services to customers. Supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain includes not only the manufacturers and suppliers, but also transporters, warehouses, retailers, and even customers themselves. In general a supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. Supply Chain Management is set of approaches utilized to efficiently integrate suppliers , manufacturers, warehouse ,and stores, so that merchandise is procured and distributed at right quantities, to right locations ,and at the right time, in order to minimize system wide cost while satisfying service level requirements.