Problem Set Quiz #2

Outbound logistics involves all activities necessary to get a company's goods to its customers. This includes activities such as packaging, storage, transportation, and delivery of products to the end customers. It is a crucial part of the value chain as it ensures that the products are efficiently and effectively delivered to the customers in a timely manner.

Muriel's job can be described as "all of the above" because she works on a team that improves production activities, which can be considered a support activity. Additionally, her role involves technology development, as she is involved in improving and implementing new technologies to enhance production. Lastly, her work in technology development supports the overall operations of the company, making this option an accurate description of her job.

Primary activities are the core activities that directly relate to the creation, development, manufacture, distribution, sale, and servicing of a product. These activities are essential for the functioning of a business and include inbound logistics, operations, outbound logistics, marketing and sales, and service. Inbound logistics involve receiving, storing, and distributing inputs. Operations refer to transforming inputs into the final product. Outbound logistics involve collecting, storing, and distributing the finished product. Marketing and sales focus on promoting and selling the product. Service activities include providing after-sales support and maintaining customer satisfaction. These primary activities are crucial in the value chain of a business.

The correct answer is "all of the above" because when customers complain about defective products, it indicates issues in multiple areas of the company. Procurement could be responsible for sourcing low-quality materials, technology development could have flaws in product design or manufacturing processes, and operations could have errors in the production or quality control. Therefore, management should investigate all these areas to identify and address the root causes of the defective products.

Jane's job of hiring machinists who maintain and repair manufacturing equipment falls under human resource management. This is because human resource management involves activities related to the recruitment, selection, training, and development of employees within an organization. By hiring and managing the machinists, Jane is directly involved in the human resource management aspect of her job.

A traditional grocery store is unlikely to exclude any of the mentioned activities in its value chain. Procurement involves sourcing and purchasing products, inbound logistics involves receiving and storing the products, outbound logistics involves delivering the products to customers, and infrastructure refers to the physical and technological resources required to support these activities. Therefore, all of these activities are essential for a traditional grocery store to operate efficiently and effectively.

Muriel's job can be described as "all of the above" because she works on a team that improves raw material warehousing, which can be considered a support activity. Additionally, her work involves technology development, as she is focused on improving the processes and systems used in the warehouse. Finally, her role also supports inbound logistics, as the improvements in the warehousing directly impact the efficiency and effectiveness of the company's inbound logistics operations.

The correct answer is "human resource management that supports procurement" because Phillip's job involves training purchase agents, which is a function related to procurement. However, his role specifically focuses on the human resource aspect of managing these agents, such as hiring, training, and supporting their professional development. This aligns with the description of "human resource management that supports procurement."

Ashley works in the procurement part of the value chain. Procurement involves the process of sourcing and purchasing materials or services needed for a business. Since Ashley buys materials for a variety of jobs, it aligns with the responsibilities of procurement, which involves acquiring the necessary resources for an organization's operations.

The support activities in the value chain model include procurement, technology development, human resource management, and firm infrastructure. Inbound logistics, operations, outbound logistics, and marketing/sales are primary activities in the value chain model, not support activities. Therefore, none of the options provided are support activities.

ADM performs upstream activities. Upstream activities refer to the processes involved in the production and sourcing of raw materials. In this case, ADM is involved in producing raw materials such as cocoa, corn syrup, corn, and soybean oil, which are used in the production of food products like snack cakes and potato chips. This indicates that ADM is engaged in activities that occur earlier in the value chain, before the final production and distribution of the food products.

In the value chain model, primary activities are those that are directly involved in the creation and delivery of a product or service. These activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. Human resource management, infrastructure, technology development, and procurement are considered support activities in the value chain model, as they provide the necessary resources and infrastructure to support the primary activities. Therefore, the correct answer is "None of the above" as none of the options listed are primary activities in the value chain model.

Management should focus its internal investigation on all of the above options: infrastructure, human resource management, and outbound logistics. Late delivery can be caused by various factors, including issues with the company's infrastructure, such as transportation or warehousing systems. It can also be influenced by human resource management, such as staffing or training problems. Additionally, outbound logistics, including the company's shipping and distribution processes, can contribute to late deliveries. Therefore, investigating all of these areas is necessary to identify and address the root causes of the customer complaints.

Upstream activities refer to the processes that occur closer to the raw materials, further from the consumer end of the value chain. These activities involve sourcing, extracting, and processing raw materials, as well as manufacturing and production. They are essential for creating the products or services that will eventually reach the consumer. Examples of upstream activities include mining, farming, refining, and manufacturing. By focusing on upstream activities, companies can ensure the efficient and effective utilization of resources and materials, which ultimately impacts the quality and cost of the final product.

The correct answer is "all of the above" because Marcus's job of buying raw materials can be described as procurement, which is a support activity that supports the operations of the firm.

Muriel's job involves hiring people to work in the payroll department, which is a support activity for the overall functioning of the corporation. Additionally, her role in human resource management supports the infrastructure of the organization. Therefore, the correct answer is "a and c" as her job can be described as both a support activity and human resource management that supports infrastructure.

The activities described in the question, such as wrapping burgers, putting them in warming slots, and serving them to customers, can be categorized as operations and marketing/sales. Operations refer to the production and delivery of goods or services, which includes the cooking and wrapping of burgers. Marketing/sales involve the front line workers taking the burgers and serving them to customers. Therefore, the company management would most likely categorize these activities as operations and marketing/sales.

Philip's job can be described as "all of the above" because he is involved in a support activity by programming computer software. This software is used to ensure the safe and on-time delivery of dairy products, which supports outbound logistics. Additionally, his role can be considered as part of the infrastructure since he plays a crucial role in maintaining and improving the systems necessary for the company's operations.

Olivia's job can be described as a support activity because she hires newly-minted PhDs for the research and development team at her company. Additionally, it can also be described as human resource management that supports technology development, as she is responsible for recruiting and managing the PhDs who contribute to the company's technology development efforts.

Sally's job involves receiving, inventorying, and warehousing raw materials. These activities are part of the inbound logistics process in the value chain, as they involve the movement and storage of materials from suppliers to the organization. Additionally, her job also involves infrastructure, as she is responsible for managing the physical facilities and equipment required for the storage and handling of the materials. Therefore, the correct answer is "b and c" - inbound logistics and infrastructure.

Infrastructure is the part of the value chain model that best encapsulates the culture of a company known for its employee-centric culture. Infrastructure refers to the physical and technological resources that support the company's operations, including its facilities, equipment, and information systems. In an employee-centric culture, the company prioritizes creating a supportive and efficient work environment for its employees. This includes providing them with the necessary tools, resources, and infrastructure to perform their jobs effectively. By investing in infrastructure that supports employee well-being and productivity, the company can create value by enabling its employees to deliver high-quality products or services.

The team at Quinet is responsible for raising funds to purchase a new computer system that will enhance the company's ability to track incoming material orders. This indicates that their work is focused on improving the efficiency and effectiveness of the company's inbound logistics processes. Inbound logistics refers to the management of the flow of materials and information from suppliers to the company. Therefore, the team's work can be described as part of the infrastructure that supports inbound logistics.

Sally's job involves receiving, inventorying, and warehousing non-defective product returns. These activities are part of the infrastructure component of the value chain. Infrastructure refers to the support systems and facilities needed for the smooth functioning of a business. In this case, Sally's role in managing the physical storage and organization of returned products contributes to the overall infrastructure of the company's operations. Therefore, the correct answer is infrastructure.

Brad works in a primary activity in the value chain. This is because he is directly involved in the production process by writing bids for customers. The bids he writes include crucial information such as the item description, materials, and labor required, which are all essential components of the production process. Therefore, Brad's role falls under the primary activities category of the value chain.