The senior executive at Company A has decided to acquire an automated warehousing system to help with logistics and inventory management. Which value chain activity was affected by the IS in this case?

Question

BlackTom AI · Accepted Answer

To approach the question, I’ll map the scenario to the value chain activities and consider where an automated warehousing system would have the most direct impact.
Option a. Inbound Logistics: This choice focuses on receiving, handling, and storing raw materials or goods as they enter the firm’s operations. An automated warehousing system directly streamlines receiving, put-away, and inventory control, which are core components of inbound logistics. The system enhances accuracy, speed, and visibility of goods as they come into the warehouse, making this the most directly affected activity.
Option b. Sales and Marketing: This activity relates to generating demand and managing customer relations. While warehouse efficiency can support order fulfillment, sales and marketing themselves are not the primary target of an automated warehousing system. The IS in this case serves operational readiness and accuracy rather than demand generation.
Option c. Human Resources: HR concerns attracting, developing, and maintaining workforce capabilities. An automated warehouse might influence staffing needs or training, but the core value-chain focus of the system is not HR processes. Hence this is not the primary area affected by the IS described.
Option d. Operations: This broad category includes the day-to-day processes that transform inputs into outputs, in which warehousing and distribution are part of operations. While there is overlap—warehousing is indeed an operational function—the more precise value-chain activity specifically targeted by automation in receiving and stocking goods is inbound logistics. Therefore, operations is a less exact fit for the direct impact described.
In summary, the automated warehousing system most directly enhances the inbound logistics activities of receiving and managing inventory as goods enter the company, which explains why inbound logistics is the correct focus. The other options describe related areas but do not capture the primary function affected by automating warehousing processes.

The senior executive at Company A has decided to acquire an automated warehousing system to help with logistics and inventory management. Which value chain activity was affected by the IS in this case?Single choice

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