Question

The cycle view of the supply chain is useful when considering operational decisions, because

A) it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.
B) it specifies the roles and responsibilities of each member of the supply chain.
C) processes are identified as either reactive or speculative.
D) it focuses on processes that are external to the firm.

Answer 1

The cycle view of the supply chain is valuable for operational decisions as it divides processes by their response to customer demand, which improves efficiency. Technological improvements and labor rights are important in strengthening these supply chains. International trade benefits from splitting the supply chain, allowing specialization and innovation.

Step-by-step explanation:

The cycle view of the supply chain is useful when considering operational decisions, because it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders. This view is integral for operational decisions as it helps in aligning processes with actual market demand, ensuring efficiency, and reducing waste. By understanding whether a process is reactive (responding to orders) or speculative (anticipating orders), companies can better manage their resources and workflows, resulting in a more streamlined supply chain.

Technological advancements, improved transportation methods, and robust policies play crucial roles in maintaining resilient supply chains, especially during national emergencies. Moreover, sharing modern technologies with developing nations contributes to more efficient and improved market products. However, beyond these advancements, one must not overlook the importance of labor rights. Integrating respectful labor practices with technological progress is essential for a balanced supply chain development.

International trade, driven largely by specialization and division of labor, demonstrates the 'splitting up of the value chain'. This involves different countries specializing in different stages of a product's production, such as the design in the United States, part supply from Korea, and assembly in China in the case of the iPhone. This specialization yields economic gains, as it facilitates continuous learning and innovation. For instance, intra-industry trade between similar countries allows firms to specialize in specific parts of the value chain, spurring further development and efficiency.