4. The primary reason for a firm to pursue strategic supply chain activities is

Question

4. The primary reason for a firm to pursue strategic supply chain activities is to A. Gain competitive advantage. B. Increase productivity C. Reduce costs D. Decrease product lead time. 5. With a laterally integrated supply chain, an organization may A. Decrease the complexity of its activities, but be able to see the larger processes more clearly B. Make gains in control and scale, but lose its ability to see the larger processes C. Make gains in scale and scope but lose its ability to see the larger processes D. Make gains in scale and scope as well as increase its ability to see the larger processes

Explanation / Answer

Question 4:

Supply chain activities are carried out at strategic level focusing on improving the organisation as a long term goal. Gaining competitive advantage is a supply chain activity which is decided by the higher management and hence is a strategic level activity. Increasing productivity is more of a tactical level activity. Cost reduction activities can be either at the strategic or tactical level. Decreasing product lead time referes to a more operational supply chain activity where the results need to be immediate. Hence the correct option is A.

Question 5:

Laterally integrated or horizontally integrated supply chain involves the organisation buying their competitors at the same level. This can help the organisation to gain in scale and control. However, it cannot increases it's ability to see the larger processes since lateral integration happens within the same level itself. The correct option is B.

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