Question

Which of the following is not a supply chain value-add? Multiple Choice Reduced overall total cost. Maximized firm competitiveness. Increased firm revenue. Improved firm asset utilization.

Answer 1

Answer:

Reduced overall total cost.

Explanation:

Supply chain reduce the total cost by efficiently use of space of warehouse, streamlining the process of ordering, by monitoring the demand of customer and measuring performance etc. It reduces the costs like holding cost of the business because it manages the inventory efficiently. So the correct option is Reduced overall total cost.

Answer 2

Answer:

The correct answer is letter "A": Reduced overall total cost.

Explanation:

The term Value-Add is used to describe the extra thing that a company is doing to a product that makes it worth more than its actual parts cost. This can be as simple as adding a brand name to a product that is not familiar or as complicated as combining several different parts in a unique way that no one ever considered.  

Supply chain value-adds can result in maximizing the company's competitiveness, asset efficiency, and revenue. Reducing the overall costs of production is more of an accounting and managerial method.