Exam 10: Coordination in a Supply Chain

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

Which of the following managerial actions does not necessarily increase total supply chain profits and moderate information distortion?

The sales typically measured by a manufacturer are

Lot size based quantity discounts

The bullwhip effect negatively impacts performance at every stage and thus hurts the relationships between different stages of the supply chain.

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

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

The bullwhip effect results in improved supply chain coordination.

The lack of information sharing between the retailer and manufacturer

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

The bullwhip effect

Aligning goals and incentives within the supply chain will

The bullwhip effect leads to increased trust between different stages of the supply chain and enhances any potential coordination efforts.

Different stages of the supply chain must forecast and plan jointly if complete coordination is to be achieved,because

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.

What is the bullwhip effect and how does it relate to lack of coordination in the supply chain?

Managers can improve coordination within the supply chain by aligning goals and incentives such that every participant in supply chain activities works to maximize total supply chain profits.

Which of the following managerial actions in the supply chain will not increase total supply chain profits and moderate the bullwhip effect?

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

Which of the following activities occur during the step in design of a supply chain partnership where the parties assess the value of the relationship?