Asked by Sierra Beets on Jun 05, 2024
Verified
A global supply chain with offshoring
A) reduces the duration of the cash flow and reduces the length of the product flow.
B) increases the length of the product flow and increases the duration of the information flow.
C) increases the duration of the cash flow but reduces the duration of the information flow.
D) reduces the length of the product flow and reduces the length of the information flow.
Cash Flow
The total amount of money being transferred into and out of a business, affecting its liquidity, operations, and financial health.
Product Flow
The movement of goods from the place of production to the point of sale and finally to the end-consumer, encompassing the entire supply chain process.
Information Flow
Information flow refers to the way information moves through an organization or system, facilitating decision-making and coordination.
- Understand the role of cash flow duration changes and information flow adjustments in global supply chains.
Verified Answer
RH
Rocío HernándezJun 05, 2024
Final Answer :
B
Explanation :
Offshoring involves outsourcing production processes to countries with lower labor costs, resulting in an increase in the length of the product flow. This also leads to a longer information flow as there is a need for communication and coordination across multiple countries and organizations. However, offshoring can also lead to improved efficiency, reduced costs, and increased profits, which can help reduce the duration of the cash flow. Overall, the global supply chain with offshoring leads to an increase in the length of the product flow and the duration of the information flow.
Learning Objectives
- Understand the role of cash flow duration changes and information flow adjustments in global supply chains.