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

The impact of the lack of coordination on supply chain processes decreases for the following measure.

Accepted Answer

A) Manufacturing cost 
B) Level of product availability 
C) Transportation cost 
D) Replenishment lead time 
A) Manufacturing cost 
B) Level of product availability 
C) Transportation cost 
D) Replenishment lead time B

Question 3

The bullwhip effect decreases

Accepted Answer

A) product availability. 
B) manufacturing cost. 
C) replenishment lead time. 
D) transportation cost. 
A) product availability. 
B) manufacturing cost. 
C) replenishment lead time. 
D) transportation cost. A

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

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.

Accepted Answer

A) True 
 B)False

Question 8

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.

Question 9

When a firm places orders in lot sizes that are much larger than the lot sizes in which demand arises,

Accepted Answer

A) variability of orders is minimized up the supply chain. 
B) variability of orders is magnified up the supply chain. 
C) suppliers gain better visibility of consumer demand. 
D) suppliers gain a more stable demand pattern. 
A) variability of orders is minimized up the supply chain. 
B) variability of orders is magnified up the supply chain. 
C) suppliers gain better visibility of consumer demand. 
D) suppliers gain a more stable demand pattern.

Question 10

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 11

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 12

Describe the impact of behavioral obstacles on supply chain coordination.

Accepted Answer

Behavioral obstacles refer to problems i

Question 13

The bullwhip effect decreases

Accepted Answer

A) transportation cost. 
B) profitability. 
C) replenishment lead time. 
D) shipping and receiving cost. 
A) transportation cost. 
B) profitability. 
C) replenishment lead time. 
D) shipping and receiving cost.

Question 14

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 15

Coordination requires every stage of the supply chain to focus on

Accepted Answer

A) the functional revenues for each supply chain member. 
B) the functional profits for each supply chain member. 
C) the functional costs for each supply chain member. 
D) supply chain surplus. 
A) the functional revenues for each supply chain member. 
B) the functional profits for each supply chain member. 
C) the functional costs for each supply chain member. 
D) supply chain surplus.

Question 16

Information distortion is exaggerated by the fact that

Accepted Answer

A) supply chains today produce a large amount of product variety. 
B) supply chains today produce a small amount of product variety. 
C) the telephone effect is extreme in situations where technology is in use. 
D) different stages of supply chains send excessive data. 
A) supply chains today produce a large amount of product variety. 
B) supply chains today produce a small amount of product variety. 
C) the telephone effect is extreme in situations where technology is in use. 
D) different stages of supply chains send excessive data.

Question 17

Mickey the manager reviewed his company's customers' orders for the past year and compared the variability of those orders with the variability of the orders he placed with his suppliers.This comparison allowed him to estimate his own company's contribution to

Accepted Answer

A) the forecast. 
B) supply chain surplus. 
C) market demand. 
D) the bullwhip effect. 
A) the forecast. 
B) supply chain surplus. 
C) market demand. 
D) the bullwhip effect.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

What is the responsibility of a designated category leader?

Accepted Answer

A) The category leader manages replenishment decisions for all suppliers. 
B) The category leader manages purchasing decisions for all retailers. 
C) The category leader manages purchasing decisions for all customers. 
D) The category leader manages replenishment decisions for all retailers. 
A) The category leader manages replenishment decisions for all suppliers. 
B) The category leader manages purchasing decisions for all retailers. 
C) The category leader manages purchasing decisions for all customers. 
D) The category leader manages replenishment decisions for all retailers.

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

The impact of the lack of coordination on supply chain processes decreases for the following measure.

The bullwhip effect decreases

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.

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

The sales typically measured by a manufacturer are

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.

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

When a firm places orders in lot sizes that are much larger than the lot sizes in which demand arises,

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

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

Describe the impact of behavioral obstacles on supply chain coordination.

The bullwhip effect decreases

All transportation decisions should be evaluated based on their effect on

Coordination requires every stage of the supply chain to focus on

Information distortion is exaggerated by the fact that

Mickey the manager reviewed his company's customers' orders for the past year and compared the variability of those orders with the variability of the orders he placed with his suppliers.This comparison allowed him to estimate his own company's contribution to

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

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

What is the responsibility of a designated category leader?

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

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

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

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?

The impact of the lack of coordination on supply chain processes decreases for the following measure.

The bullwhip effect decreases

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.

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

The sales typically measured by a manufacturer are

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.

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

When a firm places orders in lot sizes that are much larger than the lot sizes in which demand arises,

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

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

Describe the impact of behavioral obstacles on supply chain coordination.

The bullwhip effect decreases

All transportation decisions should be evaluated based on their effect on

Coordination requires every stage of the supply chain to focus on

Information distortion is exaggerated by the fact that

Mickey the manager reviewed his company's customers' orders for the past year and compared the variability of those orders with the variability of the orders he placed with his suppliers.This comparison allowed him to estimate his own company's contribution to

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

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

What is the responsibility of a designated category leader?

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

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

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

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