Final answer:
While a ketchup manufacturer can expect several benefits from having a vinegar supplier nearby, including improved value chain, quality control, lower shipping costs, timely deliveries, and reduced storage needs, the least assured benefit is the improved value chain system. This is because, while proximity can lead to potential improvements, an enhanced value chain depends on a multitude of factors such as technological integration and coordination beyond mere proximity.
Option 'd' is the correct.
Step-by-step explanation:
The question poses a scenario where a ketchup manufacturer convinces a vinegar supplier to set up a nearby plant and asks which benefit the ketchup manufacturer will be least assured of. Among the benefits considered are an improved value chain system, improved overall quality control, lower incoming shipping costs, just-in-time deliveries, and reduced storage needs. To analyze the least assured benefit, it is essential to consider the aspects of proximity and the impact on the manufacturing process.
Value Chain and Just-in-Time Delivery
Just-in-time delivery is a management strategy that aligns raw-material orders from suppliers directly with production schedules. Companies like Honda have historically benefited from this system by not needing to store parts, thereby reducing warehousing costs and contributing to better quality control, as any defects in parts become evident immediately. Improved overall quality control is another advantage because the proximity of the supplier ensures any issues with materials can be identified and addressed more rapidly.
Transport Costs and Storage Needs
Transportation costs are affected as well.
Lower incoming shipping costs are usually realized because the closer proximity of the supplier means reduced distance for materials to travel, which leads to savings on transportation. Additionally, with just-in-time delivery, reduced storage needs are a product of this system because the manufacturer doesn't need to maintain a large inventory; instead, parts are delivered as needed.
Value Chain System Improvement
Although a nearby supplier can enhance the value chain system by reducing complexity and improving integration, it is important to note that setting up a nearby plant does not inherently guarantee an improved value chain.
Improvements depend on multiple factors, such as the degree of coordination and the integration of technological systems. Therefore, while proximity can potentially lead to an improved value chain system, it is not as directly assured as the other benefits that stem from reduced transportation and inventory costs.