3.4.5 Managing Supply Chains

What is a supply chain?

• A single company producing goods

• A group of firms involved in various processes to provide a finished product or service

• A chain of retail stores

• A network of transportation routes

What does the supply chain begin with?

• The finished product

• The provider of raw materials

• The retailer

• The distributor

Why do all members of the supply chain need to be dependable?

• To ensure the product is on the shelves when needed

• To increase the cost of the product

• To reduce the quality of the product

• To delay the production process

How can businesses manage sudden changes in demand?

• By increasing prices

• By using a flexible workforce or outsourcing

• By reducing production

• By closing down temporarily

What are core workers?

• Employees who are not essential to a business

• Employees on temporary contracts

• Employees essential to a business, employed on full-time, permanent contracts

• Seasonal workers

What is the main disadvantage of outsourcing?

• It increases costs

• The business doesn't have control over the quality of the outsourced work

• It reduces flexibility

• It decreases the range of services offered

What is mass customisation?

• Producing goods in large quantities without customization

• A method of producing to order, combining flexibility of custom-made products with low cost of mass production

• A method of reducing production costs

• A method of increasing the number of suppliers

What is a benefit of mass customisation?

• It reduces customer choice

• It increases costs significantly

• It allows for an increase in customer choice without a corresponding increase in costs

• It decreases the competitive advantage

What is the most important factor for companies to consider when choosing suppliers?

• The supplier's location

• The total cost of acquiring the product

• The supplier's brand name

• The supplier's marketing strategy

Why might a company prefer a supplier that offers faster delivery?

• To reduce the number of suppliers

• To increase the total cost

• To save time in serving customers

• To improve the supplier's brand