ACCA Applied Knowledge · Business and Technology · Competitive factors
Karela Ltd manufactures furniture. It has introduced a new computerised system to receive, check and store timber on delivery so that wastage and handling time fall. Which primary activity in the value chain does this change mainly affect?
The change mainly affects inbound logistics. Inbound logistics covers receiving, handling, storing and distributing the inputs used in production, such as timber. Operations is about converting those inputs into finished furniture, so it is not the main activity affected by a system for receiving and storing deliveries.
- AOperations
- BInbound logisticsCorrect
- COutbound logistics
- DService
Explanation
Inbound logistics covers receiving, storing and distributing inputs to the production process. Receiving and storing timber falls squarely within it. Operations would be the conversion of timber into furniture, which is not what the system addresses.
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