Value chain & productivity explained answers and explanation
Value Chain & Productivity Explained Step by step Solution with Explanation
Your question:
15-7 Explain why managing productivity is important in operations management.
15-8 Who has the power in the value chain? Explain your response.
Value Chain & Productivity Explained Answers and Explanation
Efficiency and Cost Reduction:
Managing productivity helps in identifying areas where resources (labor, materials, energy, etc.) can be used more efficiently. This leads to cost reduction and improved profitability.
Customer Satisfaction:
Improved productivity often leads to better quality products and services, timely delivery, and overall customer satisfaction, which are crucial for customer retention and loyalty.
15-8: Who has the power in the value chain? Explain your response.
Power in the Value Chain:
Companies/Manufacturers:
Companies that have strong brands, proprietary technologies, or unique capabilities can hold significant power in the value chain. They can dictate terms to suppliers and have a strong influence on distributors and retailers.
15-9: Productivity and Quality in Weekly Tasks
Task 1: Grocery Shopping
Quality Selection: Take time to choose fresh, high-quality produce and ingredients.
Dietary Needs: Ensure the items meet dietary preferences and nutritional needs for higher satisfaction.
(b) Higher-Quality Output:
Proper Sorting: Sort clothes by color and fabric type to prevent damage and maintain quality.
Inbound Logistics:
Suppliers and Inventory Management: Efficient sourcing of products from a wide range of suppliers, maintaining a large inventory in strategically located warehouses.
Outbound Logistics:
Delivery Network: Extensive network of delivery partners, including Amazon’s own logistics service (Amazon Logistics), to ensure timely delivery.
Services:
Customer Service: Robust customer service support through various channels (phone, email, chat) to address customer issues promptly.
Scalability: The scalable infrastructure supports vast product ranges and high volumes of transactions, driving growth and market dominance.
Cost Management: Efficient logistics and operations management reduce costs, enabling competitive pricing.