11.1 Value-Chain Analysis

Question 1

The flow of materials and services from their original sources to final consumers is the

A. Value process
B. Supply chain
C. Product chain
D. Value chain

Answer 1

B. Supply chain

The supply chain usually encompasses more than one firm. Firms seeking to improve performance and reduce costs must analyze all phases of the supply chain as well as the value chain.

Question 2

Which one of the following is a support activity on the value chain?

A. Human resources.
B. Research and development (R&D).
C. Marketing and distribution.
D. Customer service.

Answer 2

A. Human resources.

The primary activities on the value chain are (1) R&D, (2) product design, (3) manufacturing, (4) marketing and distribution, and (5) customer service. Support activities include (1) human resources, (2) information technology, (3) contract management, (4) inventory management, and (5) plant maintenance.