Discover the primary characteristics of virtual organizations in supply chain management. Learn how collaborative process teams and data exchange enable efficient operations.
Table of Contents
Question
In supply chain management, a virtual organization is characterized primarily by:
A. use of collaborative process teams from across the supply chain.
B. use of the internet to exchange data.
C. maintenance of individual profit centers.
D. empowered decision making at lower levels in the organization.
Answer
A. use of collaborative process teams from across the supply chain.
Explanation
In supply chain management, a virtual organization is characterized primarily by the use of collaborative process teams from across the supply chain. These teams, composed of members from different companies within the supply chain, work together to achieve common goals and optimize overall performance.
Virtual organizations leverage the expertise and resources of multiple entities, allowing them to respond quickly to changing market demands and customer needs. By forming collaborative process teams, virtual organizations can:
- Share knowledge and best practices
- Streamline processes and reduce redundancies
- Improve communication and coordination
- Enhance flexibility and agility
- Drive innovation and continuous improvement
While virtual organizations may use the internet to exchange data (B), maintain individual profit centers (C), and empower decision making at lower levels (D), these are not the primary defining characteristics. The key feature that sets virtual organizations apart is their reliance on collaborative process teams from across the supply chain to achieve shared objectives and drive success.
APICS Certified Supply Chain Professional CSCP certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the APICS Certified Supply Chain Professional CSCP exam and earn APICS Certified Supply Chain Professional CSCP certification.