Question

Which of the following examples demonstrates how successful organizations manage their primary activities?

a. National Steel improved its efficiency by reducing the number of job classifications.
b. Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times.
c. Hewlett Packard has cut lead time from five days to one by employing JIT inventory management.
d. Motorola has revised its compensation system to reward employees who learn a variety of skills.

Answer 1

The answer is: C) Hewlett Packard has cut lead time from five days to one by employing JIT inventory management.

Step-by-step explanation:

Michael Porter categorized the following business activities as primary activities:

• Inbound Logistics
• Operations
• Outbound Logistics
• Marketing and Sales
• Service

Lead time is the time spent between starting and finishing an operation or production process.