chapter 3 h-i

Question 1

Supply chain management

Answer 1

is the coordination of the flow of goods and services from raw materials to delivering final products to customers

Question 2

Global sourcing of inputs

Answer 2

is acquiring raw materials or resources from overseas suppliers

Question 3

Advantages and disadvantages of global sourcing of inputs.

Answer 3

ADVANTAGES
• Able to source materials which are not readily available in the country of operations.
• Able to source resources of a higher quality which allows the business to better meet customer expectations.
• Improves access to cheaper raw materials, reducing the cost of production

DISADVANTAGES
• Imports may be affected by quotas imposed by governments.
• Delivery may be time consuming depending on where supplies are being sent from
• May increase the expenses of a business due to tariffs.

Question 4

Overseas manufacture

Answer 4

is producing goods or services in a location outside of a business’s headquarters country.

Question 5

Advantages and disadvantages of overseas manufacture

Answer 5

ADVANTAGES
• Can improve access to skilled employees who have expertise in production
• Can improve production speed due to the expertise of overseas employees.
• Setting up a manufacturing plant overseas may be less costly than a local factory.

DISADVANTAGES
• Poor CSR practices in the country may reflect badly on the business. i.e. use of child labour.
• Local employees are likely to lose their jobs due to a business moving manufacturing overseas.
• Delivery can be time consuming depending on where manufacturing occurs.

Question 6

Global outsourcing

Answer 6

is transferring specific business activities to an external business in an overseas country

Question 7

Advantages and disadvantages of global outsourcing

Answer 7

ADVANTAGES
• Can improve the quality of business activities as the external business may be experts in the area.
• Productivity may increase as the external business has expertise to complete tasks efficiently
• Able to save on costs associated with labour by reducing the need for local employees

DISADVANTAGES
• Reduced control over the business as some activities have been transferred to external businesses.
• Local employees from the business’s main operating country are likely to lose their jobs.
• Poor communication and language barriers with the external business may lead to delays

Question 8

Corporate social responsibility (CSR)

Answer 8

is the ethical conduct of a business beyond legal obligations to improve the social, economic and environmental outcomes of stakeholders

Question 9

CSR consideration include

Answer 9

• Sourcing from local suppliers instead of overseas suppliers to reduce transport emissions.
• Sourcing from suppliers that use environmentally sustainable methods with regards to natural resources.
• Implementing forecasting and just in time to reduce the risk of over ordering inputs that may later be discarded.
• Purchasing energy efficient machinery to be used in production.
• Installing reusable and clean energy sources.

Question 10

CSR considerations for inputs

Answer 10

Managers may have to consider sacrificing the cheapest production costs and purchase inputs that reduce the business’s impact on the environment instead

Question 11

CSR considerations for processes

Answer 11

implementing CSR in the operations processes can make a business more efficient and effective by reducing waste and improving its reputation.

Question 12

Strategies that can lower the amount of waste created by operations processes include:

Answer 12

• Using technology that performs processes in a precise and consistent manner to reduce waste generated from errors.
• Developing methods to capture and recycle excess input materials to be reused in production and place them back into the input element of the operations system.
• Implement just in time and lean management strategies to reduce unnecessary materials waste.
• Removing harmful chemicals from waste products.
• Disposing of any harmful waste that cannot be treated safely

Question 13

CSR considerations for outputs 

Answer 13

It is socially responsible to ensure that goods and services produced does not cause harm to the wider community

Question 14

Strategies that a business can implement to demonstrate CSR in the output phase of the operations system include:

Answer 14

• Developing an alternative product that is environmentally friendly.
• Creating products that have recyclable elements at the end of their lifecycle.
• Eliminating as much plastic as possible in the packaging and creation of the final product.
• Delivering products in bulk to retailers to reduce the business’s carbon emissions from transportation.
• Offering customers incentives for returning the product at the end of its life cycle so that it can be recycled properly.

Question 15

The similarities between global sourcing of inputs and global outsourcing.

Answer 15

Allocate certain business tasks to external businesses.

Question 16

The differences between global sourcing of inputs and global outsourcing.

Answer 16

• Acquires supplies overseas for manufacturing

* Certain business activities, such as IT services, are completed.

Question 17

The similarities between global sourcing of inputs and overseas manufacture.

Answer 17

• Ensure that the correct materials of the right quality are acquired.
• Products or raw materials travel between countries during delivery

Question 18

The differences between global sourcing of inputs and overseas manufacture

Answer 18

• Acquire supplies overseas for manufacturing.

* Manufacturing phase occurs overseas

Question 19

The similarities between global outsourcing and overseas manufacture.

Answer 19

• Produce good or activity in a location separate away from the business’s main office.

Question 20

The differences between global outsourcing and overseas manufacture.

Answer 20

• Business has little control over transferred activities

* Business retains control of operations.