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Which of the following statements is NOT true?

A. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply chain's competitive advantage and benefits to the ultimate consumer.
B. Supply chain management describes the coordination of all supply chain activities, starting with raw materials, and ending with a satisfied customer.
c. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting
D. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers, and/or retailers who deliver the product and/or service to the final customer.

1 Answer

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Final answer:

The false statement is that an increased sales effort may help achieve profit goals more easily than effective cost cutting. Effective management of the supply chain and splitting up the value chain are crucial for the specialization and innovation in production processes within the global market.

Step-by-step explanation:

The statement from the provided options that is NOT true is: An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. While increased sales efforts can contribute to higher revenue, it isn't necessarily easier or more effective than cost cutting for reaching profit goals. Profit can be increased either by boosting sales or by reducing costs, and the effectiveness of these strategies can vary based on the specific context and situation of the firm.

Supply chain management aims to maximize the entire supply chain's competitive advantage and provide benefits to the ultimate consumer by coordinating all activities within the supply chain. A supply chain indeed includes suppliers, manufacturers, or service providers, as well as distributors, wholesalers, and/or retailers who deliver the product or service to the final customer.

Regarding the advancement and specialization within the global economy, improvements in communication technology, the sharing of information, and transportation have made splitting up the value chain more feasible. This allows for firms to focus on specific stages of production, encourages intra-industry trade, and fosters the opportunity for specialization and innovation within different sectors.

User Robert Speicher
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