Question 1

How do improperly structured incentives lead to a lack of coordination in the supply chain?

Accepted Answer

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. Incentives that focus only on the local impact of an action result in decisions that do not maximize total supply chain profits. Buying decisions based on maximizing profits at a single stage of the supply chain lead to ordering policies that do not maximize supply chain profits.
Improperly structured sales force incentives are a significant obstacle to coordination in the supply chain. In many firms, sales force incentives are based on the amount the sales force sells during an evaluation period of a month or a quarter. The sales typically measured by a manufacturer are the quantity sold to distributors or retailers (sell-in), not the quantity sold to final customers (sell-through). Measuring performance based on sell-in is often justified on the grounds that the manufacturer's sales force does not control sell-through. This leads to spikes in orders that do not reflect actual customer needs.

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

Incentives that focus only on the local impact of an action result in decisions that

Accepted Answer

A)  do not maximize total supply chain profits. 
B)  maximize total supply chain profits. 
C)  minimize total supply chain profits. 
D)  minimize total supply chain cost. 
A)  do not maximize total supply chain profits. 
B)  maximize total supply chain profits. 
C)  minimize total supply chain profits. 
D)  minimize total supply chain cost. A

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

How does cooperation and trust improve performance in a supply chain partnership?

Accepted Answer

Cooperation and trust within the supply

Question 6

All transportation decisions should be evaluated based on their effect on

Accepted Answer

A)  transportation costs. 
B)  fuel costs. 
C)  total costs. 
D)  sales revenue. 
A)  transportation costs. 
B)  fuel costs. 
C)  total costs. 
D)  sales revenue.

Question 7

A high fashion retailer should rely on

Accepted Answer

A)  historical data to forecast next season's demand. 
B)  interpretation of industry trends and customer tastes to forecast next season's demand. 
C)  store-level POS data to forecast next season's demand. 
D)  distribution center withdrawals to forecast next season's demand. 
A)  historical data to forecast next season's demand. 
B)  interpretation of industry trends and customer tastes to forecast next season's demand. 
C)  store-level POS data to forecast next season's demand. 
D)  distribution center withdrawals to forecast next season's demand.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The replenishment decision in a VMI system is owned by the

Accepted Answer

A)  manufacturer. 
B)  retailer. 
C)  customer. 
D)  cloud. 
A)  manufacturer. 
B)  retailer. 
C)  customer. 
D)  cloud.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

A manufacturer with significant market power should use

Accepted Answer

A)  two-part tariffs and volume discounts to achieve coordination. 
B)  lot-size-based quantity discounts to achieve coordination. 
C)  forward-buying with retail coupons to achieve coordination. 
D)  liquidators and reverse-buying to achieve coordination. 
A)  two-part tariffs and volume discounts to achieve coordination. 
B)  lot-size-based quantity discounts to achieve coordination. 
C)  forward-buying with retail coupons to achieve coordination. 
D)  liquidators and reverse-buying to achieve coordination.

Question 12

One of the best ways to solve coordination problems is

Accepted Answer

A)  through teams comprised of different members of the supply chain. 
B)  through investments in cutting edge information technology. 
C)  by institution penalties for supply chain members that don't cooperate. 
D)  by implementing a supply chain resource planning module. 
A)  through teams comprised of different members of the supply chain. 
B)  through investments in cutting edge information technology. 
C)  by institution penalties for supply chain members that don't cooperate. 
D)  by implementing a supply chain resource planning module.

Question 13

The sales typically measured by a manufacturer are

Accepted Answer

A)  the quantity sold to final customers (sell-through). 
B)  the quantity sold to distributors or retailers (sell-in). 
C)  the quantity reported by the salesperson. 
D)  based on the quantity of supplies purchased from key suppliers. 
A)  the quantity sold to final customers (sell-through). 
B)  the quantity sold to distributors or retailers (sell-in). 
C)  the quantity reported by the salesperson. 
D)  based on the quantity of supplies purchased from key suppliers.

Question 14

Trading partners collaborate on store-level POS forecasts in

Accepted Answer

A)  store replenishment collaboration. 
B)  DC replenishment collaboration. 
C)  retail event collaboration. 
D)  collaborative assortment planning. 
A)  store replenishment collaboration. 
B)  DC replenishment collaboration. 
C)  retail event collaboration. 
D)  collaborative assortment planning.

Question 15

If demand is uncertain, a manufacturer can incentivize retailers to provide high levels of product availability by using

Accepted Answer

A)  high fixed costs. 
B)  buyback contracts. 
C)  low fixed costs. 
D)  zero-cost contracts. 
A)  high fixed costs. 
B)  buyback contracts. 
C)  low fixed costs. 
D)  zero-cost contracts.

Question 16

A fundamental aspect of successful collaboration is

Accepted Answer

A)  sharing product designs. 
B)  identification and resolution of exceptions. 
C)  no stock outs. 
D)  complete information sharing. 
A)  sharing product designs. 
B)  identification and resolution of exceptions. 
C)  no stock outs. 
D)  complete information sharing.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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.

Accepted Answer

A) True 
 B)False

Question 19

The lack of supply chain coordination on various measures of performance has costs associated with it. Which of the following is one of these costs?

Accepted Answer

A)  Quality 
B)  Reliability 
C)  Manufacturing 
D)  Pricing 
A)  Quality 
B)  Reliability 
C)  Manufacturing 
D)  Pricing

Question 20

What is the impact of lack of coordination on the performance of the supply chain?

Accepted Answer

A lack of coordination occurs either bec

How do improperly structured incentives lead to a lack of coordination in the supply chain?

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

Incentives that focus only on the local impact of an action result in decisions that

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

How does cooperation and trust improve performance in a supply chain partnership?

All transportation decisions should be evaluated based on their effect on

A high fashion retailer should rely on

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

The replenishment decision in a VMI system is owned by the

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

A manufacturer with significant market power should use

One of the best ways to solve coordination problems is

The sales typically measured by a manufacturer are

Trading partners collaborate on store-level POS forecasts in

If demand is uncertain, a manufacturer can incentivize retailers to provide high levels of product availability by using

A fundamental aspect of successful collaboration is

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

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.

The lack of supply chain coordination on various measures of performance has costs associated with it. Which of the following is one of these costs?

What is the impact of lack of coordination on the performance of the supply chain?

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

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

Filters

Exam 10: Coordination in a Supply Chain

How do improperly structured incentives lead to a lack of coordination in the supply chain?

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

Incentives that focus only on the local impact of an action result in decisions that

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

How does cooperation and trust improve performance in a supply chain partnership?

All transportation decisions should be evaluated based on their effect on

A high fashion retailer should rely on

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

The replenishment decision in a VMI system is owned by the

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

A manufacturer with significant market power should use

One of the best ways to solve coordination problems is

The sales typically measured by a manufacturer are

Trading partners collaborate on store-level POS forecasts in

If demand is uncertain, a manufacturer can incentivize retailers to provide high levels of product availability by using

A fundamental aspect of successful collaboration is

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

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.

The lack of supply chain coordination on various measures of performance has costs associated with it. Which of the following is one of these costs?

What is the impact of lack of coordination on the performance of the supply chain?

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

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

Filters