When the Operations and Supply Chain Areas Are Not Linked

question 24

Multiple Choice

When the operations and supply chain areas are not linked with the overall business strategy, but instead follow industry practices, the firm is in this stage of alignment.

• A)internally neutral
• B)externally neutral
• C)internally supportive
• D)externally supportive

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Definitions:

Decentralized Units

Separate divisions or departments within an organization that operate semi-autonomously, with their management responsible for certain decisions and operations.

Investment Centers

Segments or units within an organization for which the manager is responsible for generating revenue and controlling costs, often evaluated based on their return on investment.

Profit Centers

Segments or departments within a business that are responsible for generating profits and are evaluated on their profitability performance.

Cost Centers

Divisions or departments within an organization that do not directly generate revenue but incur costs, used for tracking and managing expenses.