1. Which of the following statements is true of a value chain?

a. A value chain is narrower in scope than a supply chain.

b. The pre- and postservice framework of a value chain emphasizes that service is a critical component of traditional manufacturing processes.

c. A value chain solely focuses on the operations function of an organization.

d. The input-output framework of a value chain suggests that the value chain begins with inputs from customers.

2. Which of these statements about cycle inventory is most accurate?

a. Changing the lead time for an item has no direct effect on cycle inventory

b. cycle inventory should be larger when demand is uncertain

c. cycle inventory should be smaller when demand is uncertain

d. shorter average times between orders means average cycle inventory should be higher

e. if there is no pipeline inventory, then cycle inventory must be at its maximum level.