Exam 13: Supply Chain Process Integration

Benefits of internal process integration include greater flexibility to respond to market changes and better utilization of resources.

It is important for all supply chain members to first understand the important characteristics upon which the supply chain end product is competing.Once this is understood,the supply chain members should all be using strategies consistent with those competitive characteristics when delivering their product and/or service.

An important initial step in the supply chain integration model is for a firm to identify the primary trading partners so the firm can concentrate its time and resources on managing the important process links with these companies.

Which of the following tends to reduce safety stocks among supply chain members,generating even less variability in supply chain orders?

When demand exceeds a supplier's finished goods available,a supplier may allocate product in proportion to what buyers ordered.This rationing often results in shortage gaming by the suppliers customers.