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Which activity area in the supply chain is generally focused on productivity or "up time" and usually has no visibility of customer service or inventory metrics?

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User EdG
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1 Answer

4 votes

Final answer:

In supply chain management, manufacturing is the activity area focused on up-time, often without visibility on customer service or inventory metrics. The goal in manufacturing is to keep production lines running efficiently, especially with just-in-time systems that require smooth operations synchronized with deliveries.

Step-by-step explanation:

In the supply chain, the activity area generally focused on productivity or "up time" and typically lacking visibility of customer service or inventory metrics is manufacturing. In the context of just-in-time (JIT) delivery systems, manufacturers prioritize keeping production lines running smoothly and efficiently, to align with the delivery of parts and materials needed for immediate use. Since JIT systems minimize warehousing and inventory, manufacturers rely on regular and reliable deliveries to maintain productivity. The focus remains on the operational effectiveness of the manufacturing floor rather than the broader supply chain metrics of customer service or inventory levels.

This singular focus, while beneficial for the efficiency of the manufacturing process itself, can sometimes lead to a disconnect between manufacturing and the other components of the supply chain, such as inventory management and customer satisfaction. However, through advanced technologies and improved transportation, companies are finding ways to balance productivity with the need to respond to market demands and to protect labor rights, aiming for a more integrated and sustainable supply chain management approach.

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