The Improvement Gap Analysis can be utilised to manage trade-offs in operational strategy. Which of the following is measured by the IGA? Select ALL that apply.
The Improvement Gap Analysis measures customer dissatisfaction levels. It describes the current state of an organisation and what needs to be done to reach the desired state. The gap between these states represents customer dissatisfaction. The IPA matrix by Piccolo et al categorises dissatisfaction into four quadrants, helping organisations determine whether action is needed. (See p. 137)
Which of the following is a difference between a supply chain and a supply network? Select ALL that apply.
A supply chain is a simple, linear system where products move from A B C.
A supply network is multi-layered, with horizontal and vertical connections, making it more complex.
Dimension difference (B): Supply networks have larger dimensions, with multiple supply channels and flows.
Complexity (C): A supply network is more intricate than a single supply chain.
Number of players (D): Supply networks involve more entities than a simple supply chain.
Profit made (A) is incorrect, as both supply chains and supply networks can be profitable.
Location of players (E) is incorrect, as both supply chains and networks can be local or global.
(LO 1.1, See p.8)
Which of the following are benefits of optimising the supply chain? Select ALL that apply.
Optimising the supply chain brings benefits such as increased flexibility, higher profit margins, better demand forecasting, and waste reduction.
Use of AI and technology (D) is incorrect because it is a method to achieve supply chain optimisation, not a benefit itself.
(LO 1.1, See p.3)
Which of the following is considered a primary activity in the Value Chain?
Marketing and Sales is a primary activity in Porter's Value Chain, directly contributing to delivering value to customers.
Procurement (A), HR (B), and Technology Development (C) are support activities.
(LO 1.2, See p.29)
White Moon Ltd, a manufacturing organisation, is considering outsourcing transportation. What would be a reason for doing this?
Outsourcing replaces fixed costs with variable costs---companies only pay for what they use, rather than maintaining their own fleet.
Option A is incorrect because gaining market access is a benefit of offshoring, not outsourcing.
Option C is incorrect as there is no mention of shareholders in the scenario.
Option D is incorrect since the inefficiency trap relates to offshoring.
(LO 1.2, See p.44)
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