Question

while there are multiple views of supply chain management, there should be agreement about which of the following?

○ scm should be across corporate functions inside the firm and across firms in the supply chain.

○ scm should be corporate functions inside a firm.

○ scm should be across firms in the supply chain with only the involvement of the procurement, manufacturing and logistics departments inside the firm.

○ when the sales and product development departments inside the firm are involved scm becomes less effective and less efficient because things get too complicated.

Explanation:

Supply Chain Management (SCM) is a cross - functional and cross - firm concept. It involves coordinating activities not just within a single firm's functions but also across different firms in the supply chain. The first option states that SCM should be across corporate functions inside the firm and across firms in the supply chain, which aligns with the fundamental understanding of SCM. The second option is incorrect as it limits SCM to only inside a firm. The third option is wrong because SCM involves more than just Procurement, Manufacturing, and Logistics Departments within a firm. The fourth option is incorrect as involving Sales and Product Development Departments can enhance SCM effectiveness, not reduce it.

Answer:

A. SCM should be across corporate functions inside the firm and across firms in the supply chain.