Question

In order to effectively manage the company’s value chain,a. the customer service function should focus on offering high-quality products at higher prices.b. the production function should locate customers and persuade them to buy the company's products.c. the materials management function should hold greater inventories in order to avoid shortages.d. the marketing function should focus on customer needs rather than the type of products.e. the sales function should control the movement of physical materials from procurement through customer delivery.

Answer 1

c. the materials management function should hold greater inventories in order to avoid shortages.

Step-by-step explanation:

• MM, i.e material management function is the core function of the organization supply chain as it includes the supply chain execution capabilities. And is used to plan total material requirements which are then communicated to procurement and other functions for sourcing,

• Also determining the inventory levels to hold for each type of inventory in order to avoid shortages. As the major challenges they face s the maintenance of the material flow.