Coordination In A Supply Chain

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Questions Bank

Understanding the Supply Chain
Supply Chain Performance: Achieving Strategic Fit and Scope
Supply Chain Drivers and Metrics
Designing Distribution Networks and Applications to e-Business
Network Design in the Supply Chain
Designing Global Supply Chain Networks
Demand Forecasting in a Supply Chain
Aggregate Planning in a Supply Chain
Sales and Operations Planning: Planning Supply and Demand in a Supply Chain
Coordination in a Supply Chain
Managing Economies of Scale in the Supply Chain: Cycle Inventory
Managing Uncertainty in a Supply Chain: Safety Inventory
Determining the Optimal Level of Product Availability
Transportation in a Supply Chain
Sourcing Decisions in a Supply Chain
Pricing and Revenue Management in a Supply Chain
Sustainability and the Supply Chain

All Questions

Question 1

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Supply chain coordination requires each stage of the supply chain to take into account the impact its actions have on other stages.

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Question 2

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A lack of coordination occurs either because different stages of the supply chain have objectives that conflict or because information moving between stages gets delayed and distorted.

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Question 3

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The bullwhip effect enables different stages of the supply chain to have a consistent estimate of what demand looks like.

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Question 4

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Supply chain coordination improves if all stages of the chain take actions that are aligned and together increase total supply chain surplus.

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Question 5

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With an uncoordinated supply chain each stage tries to maximize its own profits, resulting in actions that often diminish total supply chain profits.

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Question 6

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The bullwhip effect moves a supply chain away from the efficient frontier by increasing cost and decreasing responsiveness.

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Question 7

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The bullwhip effect reduces the profitability of a supply chain by making it simpler to provide a given level of product availability.

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Question 8

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Incentive obstacles refer to situations where incentives offered to different stages or participants in a supply chain lead to actions that increase variability and reduce total supply chain profits.

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Question 9

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Improperly structured sales force incentives are a significant obstacle to coordination in the supply chain.

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Question 10

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Measuring performance based on sell-through is often justified on the grounds that the manufacturer's sales force does not control sell-in.

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Question 11

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The lack of information sharing between the retailer and manufacturer leads to a large fluctuation in manufacturer orders.

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Question 12

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Pricing obstacles refer to situations in which the pricing policies for a product lead to an increase in variability of orders placed.

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Question 13

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Lot size based quantity discounts reduce the bullwhip effect within the supply chain.

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Question 14

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Trade promotions and other short-term discounts offered by a manufacturer result in large orders during the promotion period followed by very small orders after that.

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Question 15

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Behavioral obstacles are often related to the way the supply chain is structured and reduce the bullwhip effect.

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Question 16

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Sharing of POS data helps reduce the bullwhip effect because it allows each stage of the supply chain to use orders from the previous stage to forecast future demand.

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Question 17

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When a single stage controls replenishment decisions for the entire chain, the problem of multiple forecasts is magnified and coordination within the supply chain follows.

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Question 18

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A reduction of lot sizes increases the amount of fluctuation that can accumulate between any pair of stages of a supply chain, thus increasing the bullwhip effect.

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Question 19

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Tying allocation to past sales removes any incentive a retailer may have to inflate orders, as a result dampening the bullwhip effect.

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Question 20

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Managers can encourage the bullwhip effect by devising pricing strategies that encourage retailers to order in smaller lots and reduce forward buying.

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