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The Importance of Information in the Supply Chain


Information is important because it provides the facts that supply chain managers use to make decisions. Without information, a manger will not know what customers want, how much inventory is in stock and when more products should be produced and shipped. In short, without information, a manager can only make decisions blindly.


Managers must understand how information is gathered and analyzed. This is where information technology comes into play. Information technology serves as the eyes and ears of management in a supply chain, capturing and delivering the information necessary to make a good decision. For instance, an IT system at a personal computer manufacturer may help a manager analyze the information and recommend an action. The manager can use the remaining chips first, then look at demand forecast, and determine whether to order more chips.


There are four reasons why timely and accurate information has become more important for effective logistics system design and operations. First, customers recognize information about order status, product availability, delivery schedule, and shipment tracking as necessary elements of total customer service. Then, managers realize that information can be used to reduce human resource requirements. What’s more, information increases flexibility with regard to how, when, and where resources may be used to gain strategic advantage. And finally, enhanced information transfer and exchange capability using the Internet is changing relationships between buyers and sellers and refining channel relationships.


 


1.Information is so important that .

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A. it provides the facts that supply chain managers use to make decisions


B. managers can only make decisions blindly without it


C. managers will know nothing without it


2.Information technology.

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A. could be used to gather and deliver information to make decisions


B. can be used to determine whether to order more chips


C. is necessary to make a good decision


3.Information can.

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A. help customers to know many things but not product availability.


B. not be used to reduce human resource requirements


C. help to refine channel relationships


4.If you are a manager, you will use information to .

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A. order more chips


B. help improve customer service


C. know which staff is not on duty and should be laid off


5.The main point of this passage is about.

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A. how to use information


B. the importance of information


C. where to gather information

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