Supply Chain Management

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Questions and Answers

Why is it important to consider supply chain management?

  • To ignore the impact of distribution on total costs
  • To focus solely on internal operations for cost efficiency
  • To reduce the speed of delivery and increase costs
  • To manage the flow of information, materials, and services from suppliers to customers (correct)

Where can up to 25% of total costs lie?

  • In research and development activities
  • Outside of operations, specifically in the supply chain, including distribution (correct)
  • In marketing and advertising expenses
  • Within internal operations, such as production and quality control

What are the benefits of applying a total system approach to supply chain management?

  • Higher speed in delivery, higher dependability, better flexibility, and lower costs (correct)
  • Only impact on cost without affecting other factors
  • No impact on delivery speed, dependability, and flexibility
  • Decreased speed in delivery, decreased dependability, reduced flexibility, and higher costs

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