Question

Supply chain management has grown as a prevalent perspective on operations management because:

a. Technology has facilitated globalization.
b. Firms have become more vertically integrated.
c. Governments have become less open to trade.
d. Purchasing managers now have stronger roles in companies.

Answer 1

Supply chain management's importance has increased due to advances in technology that enable globalization, reductions in transportation costs, improvements in long-distance management of economic activities, and international trade agreements.

Step-by-step explanation:

The prevalence of supply chain management within operations management has been largely influenced by technology's role in facilitating globalization. This process has several driving factors, including advancements in transportation methods like shipping and air cargo, which have significantly reduced transportation costs. Moreover, breakthroughs in computing and telecommunications have streamlined the process of managing economic activities over long distances, pertaining to aspects like production and sales. This is particularly evident in the current economy where many products and services are informational and can be digitally transported, such as computer software or financial advice. Additionally, international agreements and treaties have fostered an environment more conducive to international trade, further encasing the importance of a robust and efficient supply chain.