Question

Which of the following is true for supply chain management?

a. Supply chain management applies only to manufacturing because it deals with the flow of materials.
b. Supply chain management concepts can be applied to both manufacturing and service organizations.
c. Supply chain management focuses on a firm's relationships with its vendors.
d. Supply chain management focuses on creating information linkages within the firm so functional areas can optimize their operations at the expense of the other internal functions.
e. Supply chain management has a primary focus on the distribution of a firm's products.

Answer 1

Supply chain management concepts can be applied to both manufacturing and service organizations. It involves the flow of materials, relationships with vendors, creating information linkages within the firm, and the distribution of a firm's products. Option b is correct.

Step-by-step explanation:

Supply chain management concepts can be applied to both manufacturing and service organizations. It is not limited to manufacturing and involves the flow of materials, relationships with vendors, creating information linkages within the firm, and the distribution of a firm's products. Additionally, supply chain management helps optimize operations across different functional areas.

SCM extends beyond the relationships with vendors, as it embraces all interactions from initial suppliers to end customers, encapsulating production, transportation, and distribution processes along with information systems needed for coordinating these activities. The evolution of the world economy toward the specialization of tasks in the value chain means that a broad range of businesses globally are part of the supply chain. The increased granularity of specialization has prompted firms to innovate and utilize technology to optimize various segments of the production process.