chopra_scm5_tif_ch10.doc
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Supply Chain Management, 5e (Chopra/Meindl) Chapter 10 Coordination in a Supply Chain
10.1 True/False Questions 1) Supply chain coordination requires each stage of the supply chain to take into account the impact its actions have on other stages. ns!er" T#$% &iff" 1 Topic" 10.1 'ack of Supply (hain (oordination and the the ull!hip %ffect (S" nalytic Skills 'earning *utcome" (ompare common approaches to supply chain design +) lack of coordination occurs either ,ecause different stages of the supply chain have o,-ectives that conflict or ,ecause information moving ,et!een stages gets delayed and distorted. ns!er" T#$% &iff" + Topic" 10.1 'ack of Supply (hain (oordination and the the ull!hip %ffect 'earning *utcome" (ompare common approaches to supply chain design ) nformation is distorted as it moves !ithin the supply chain ,ecause complete information is not shared ,et!een stages. ns!er" T#$% &iff" 1 Topic" 10.1 'ack of Supply (hain (oordination and the the ull!hip %ffect 'earning *utcome" (ompare common approaches to supply chain design ) The ,ull!hip effect ena,les different stages of the supply chain to have a consistent estimate of !hat demand looks like. ns!er" F'S% &iff" + Topic" 10.1 'ack of Supply (hain (oordination and the the ull!hip %ffect (S" nalytic Skills 'earning *utcome" (ompare common approaches to supply chain design ) The ,ull!hip effect results in improved supply chain coordination. ns!er" F'S% &iff" 1 Topic" 10.1 'ack of Supply (hain (oordination and the the ull!hip %ffect 'earning *utcome" (ompare common approaches to supply chain design
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7) The ,ull!hip effect negatively impacts performance at every stage and thus hurts the relationships ,et!een different stages of the supply chain. ns!er" T#$% &iff" + Topic" 10.+ The %ffect %ffect on 4erformance of 'ack of (oordination (oordination (S" nalytic Skills 'earning *utcome" (ompare common approaches to supply chain design 8) The ,ull!hip effect leads to increased trust ,et!een different stages of the supply chain and enhances any potential coordination efforts. ns!er" F'S% &iff" + Topic" 10.+ The %ffect %ffect on 4erformance of 'ack of (oordination (oordination 'earning *utcome" (ompare common approaches to supply chain design 9) The ,ull!hip effect moves a supply chain a!ay from the efficient frontier ,y increasing cost and decreasing responsiveness. ns!er" T#$% &iff" 1 Topic" 10.+ The %ffect %ffect on 4erformance of 'ack of (oordination (oordination (S" nalytic Skills 'earning *utcome" (ompare common approaches to supply chain design :) The ,ull!hip effect reduces the profita,ility of a supply chain ,y making it simpler to provide a given level of product availa,ility. ns!er" F'S% &iff" 1 Topic" 10.+ The %ffect %ffect on 4erformance of 'ack of (oordination (oordination 'earning *utcome" (ompare common approaches to supply chain design 10) ncentive o,stacles refer to situations !here incentives offered to different stages or participants in a supply chain lead to actions that increase varia,ility and reduce total supply chain profits. ns!er" T#$% &iff" 1 Topic" 10. *,stacles to (oordination (oordination in a Supply (hain (S" nalytic Skills 'earning *utcome" &iscuss options for measuring supply supply chain performance 11) ncentives that focus only on the local impact of an action result in decisions that minimi;e total supply chain profits. ns!er" F'S% &iff" Topic" 10. *,stacles to (oordination (oordination in a Supply (hain 'earning *utcome" &iscuss options for measuring supply supply chain performance
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1+) mproperly structured sales force incentives are a significant o,stacle to coordination in the supply chain. ns!er" T#$% &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain 'earning *utcome" &iscuss options for measuring supply chain performance 1) imi;e total supply chain profits. ) ma>imi;e total supply chain profits. () minimi;e total supply chain profits. &) minimi;e total supply chain cost. %) none of the a,ove ns!er" &iff" + Topic" 10.+ The %ffect on 4erformance of 'ack of (oordination (S" nalytic Skills 'earning *utcome" (ompare common approaches to supply chain design 1) mproperly structured sales force incentives ) help create sta,le demand. ) have very little effect on the timing of customer o rders. () tend to create spikes in customer orders. &) ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes. %) none of the a,ove ns!er" ( &iff" 1 Topic" 10. *,stacles to (oordination in a Supply (hain 'earning *utcome" (ompare common approaches to supply chain design 1) The sales typically measured ,y a manufacturer are ) the quantity sold to final customers @sell-through). ) the quantity sold to distri,utors or retailers @sell2in). () the quantity reported ,y the salesperson. &) all of the a,ove %) none of the a,ove ns!er" &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain 'earning *utcome" &iscuss options for measuring supply chain performance 102: (opyright 3 +01 4earson %ducation5 nc. pu,lishing as 4rentice 6all
1) Situations !here demand information is distorted as it moves ,et!een different stages of the supply chain5 leading to increased varia,ility in orders !ithin the supply chain are referred to as ) incentive o,stacles. ) information processing o,stacles. () operational o,stacles. &) pricing o,stacles. %) ,ehavioral o,stacles. ns!er" &iff" 1 Topic" 10. *,stacles to (oordination in a Supply (hain (S" nalytic Skills 'earning *utcome" &iscuss options for measuring supply chain performance 17) The fact that each stage in a supply chain forecasts demand ,ased on the stream of orders received from the do!nstream stage results in ) forecasts ,ased on actual consumer demand patterns. ) a reduction in demand as !e move up the supply chain from the retailer to the manufacturer. () a magnification of fluctuations in demand as !e move up the supply chain from the retailer to the manufacturer. &) an increase in forecast accuracy. %) none of the a,ove ns!er" ( &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain 'earning *utcome" &escri,e ma-or approaches to forecasting 18) The lack of information sharing ,et!een the retailer and manufacturer ) magnifies the ,ull!hip effect. ) minimi;es the fluctuation in manufacturer orders. () leads to a large fluctuation in manufacturer orders. &) all of the a,ove %) and ( only ns!er" % &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain 'earning *utcome" (ompare common approaches to supply chain design
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19) ctions taken in the course of placing and filling orders that lead to an increase in varia,ility are referred to as ) incentive o,stacles. ) information processing o,stacles. () operational o,stacles. &) pricing o,stacles. %) ,ehavioral o,stacles. ns!er" ( &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain 'earning *utcome" (ompare common approaches to supply chain design 1:) ?hen a firm places orders in lot si;es that are much larger than the lot si;es in !hich demand arises5 ) varia,ility of orders is minimi;ed up the supply chain. ) varia,ility of orders is magnified up the supply chain. () suppliers gain ,etter visi,ility of consumer demand. &) suppliers gain a more sta,le demand pattern. %) none of the a,ove ns!er" &iff" 1 Topic" 10. *,stacles to (oordination in a Supply (hain (S" nalytic Skills 'earning *utcome" (ompare common approaches to supply chain design +0) #ationing schemes that allocate limited production in proportion to the orders placed ,y retailers ) result in a game in !hich retailers try to increase the si;e of their orders to increase the amount supplied to them. ) lead to a magnification of the ,ull!hip effect. () lead to the manufacturer ,eing left !ith a surplus of product and capacity. &) all of the a,ove %) and ( only ns!er" & &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain 'earning *utcome" (ompare common approaches to supply chain design
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+1) Situations in !hich the pricing policies for a product lead to an increase in varia,ility of orders placed are referred to as ) incentive o,stacles. ) information processing o,stacles. () operational o,stacles. &) pricing o,stacles. %) ,ehavioral o,stacles. ns!er" & &iff" 1 Topic" 10. *,stacles to (oordination in a Supply (hain 'earning *utcome" (ompare common approaches to supply chain design ++) 'ot si;e ,ased quantity discounts ) decrease the lot si;e of orders placed !ithin the supply chain. ) increase the lot si;e of orders placed !ithin the supply chain. () magnify the ,ull!hip effect. &) and ( only %) and ( only ns!er" % &iff" 1 Topic" 10. *,stacles to (oordination in a Supply (hain 'earning *utcome" (ompare common approaches to supply chain design +) For!ard ,uying results in ) a sta,ili;ed ,uying pattern. ) small orders during the promotion period follo!ed ,y very small orders after that. () small orders during the promotion period follo!ed ,y large orders after that. &) large orders during the promotion period follo!ed ,y very small orders after that. %) none of the a,ove ns!er" & &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain (S" nalytic Skills 'earning *utcome" (ompare common approaches to supply chain design +) 4ro,lems in learning !ithin organi;ations that contri,ute to the ,ull!hip effect are referred to as ) incentive o,stacles. ) information processing o,stacles. () operational o,stacles. &) pricing o,stacles. %) ,ehavioral o,stacles. ns!er" % &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain 'earning *utcome" (ompare common approaches to supply chain design
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+) ehavioral o,stacles to supply chain coordination are often related to ) the communication ,et!een different stages. ) pricing and operational decisions. () the !ay the supply chain is structured. &) all of the a,ove %) and ( only ns!er" % &iff" Topic" 10. *,stacles to (oordination in a Supply (hain (S" nalytic Skills 'earning *utcome" (ompare common approaches to supply chain design +7) ?hich of the follo!ing managerial actions in the supply chain !ill not increase total supply chain profits and moderate the ,ull!hip effectA ) ligning of goals and incentives ) ncreasing information inaccuracy () mproving operational performance &) &esigning pricing strategies to sta,ili;e orders %) uilding partnerships and trust ns!er" &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain 'earning *utcome" (ompare common approaches to supply chain design +8) ligning goals and incentives !ithin the supply chain !ill ) improve coordination !ithin the supply chain. ) encourage every participant in supply chain activities to ma>imi;e total supply chain profits. () reduce demand uncertainty. &) all of the a,ove %) and only ns!er" % &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain (S" nalytic Skills 'earning *utcome" (ompare common approaches to supply chain design
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+9) ?hich of the follo!ing is not an approach to improve coordination !ithin the supply chain ,y aligning goals and incentivesA ) ligning incentives across functions ) Sharing point of sales @4*S) data () 4ricing for coordination &) ltering sales force incentives from sell2in to sell2through %) none of the a,ove ns!er" &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain (S" nalytic Skills 'earning *utcome" (ompare common approaches to supply chain design +:) ?hich of the follo!ing is not an approach to achieve coordination ,y improving the accuracy of information availa,le to different stages in the supply chainA ) Sharing point of sales @4*S) data ) mplementing colla,orative forecasting and planning () &esigning single stage control of replenishment &) 4ricing for coordination %) none of the a,ove ns!er" & &iff" + Topic" 10. *,stacles to (oordination in a Supply (hain (S" nalytic Skills 'earning *utcome" (ompare common approaches to supply chain design 0) Sharing point of sales @4*S) data across the supply chain can help reduce the ,ull!hip effect ,ecause ) each stage of the supply chain uses orders from the previous stage to forecast future demand. ) all supply chain stages can forecast future demand ,ased on final customer demand. () all stages can respond to the same change in customer demand. &) all of the a,ove %) and ( only ns!er" & &iff" Topic" 10. i,ility5 trust5 and commitment in ,oth parties helps a supply chain relationship succeed. n particular5 commitment of top management on ,oth sides is crucial for success. The manager directly responsi,le for the partnership can also facilitate the de velopment of the relationship ,y clearly identifying the value of the partnership for each party in terms of his o!n e>pectations. +. Cood organi;ational arrangements5 especially for information sharing and conflict resolution5 improve chances of success. 'ack of information sharing and the ina,ility to resolve conflicts are the t!o ma-or factors that lead to the ,reakdo!n of supply chain partnerships. . tremely important in the supply chain conte>t ,ecause most relationships !ill involve parties !ith unequal po!er. $nanticipated situations that hurt one party more than the other often arise. The more po!erful party often has greater control over ho! the resolution occurs. The fairness of the resolution influences the strength of the relationship in the future. Fairness requires that the ,enefits and costs of the relationship ,e shared ,et!een the t!o parties in a !ay that makes ,oth !inners. relationship ,ased on po!er !ould ma>imi;e all ,enefits on one side. t is thus important that the !eaker party perceive the fairness of the stronger party=s procedures and policies for dealing !ith its partners. The stronger party is in control of its policies and procedures and should not ,ias the policies in a !ay that is opportunistic and does not ,enefit the entire supply chain. Fair procedures should encourage t!o2!ay communication ,et!een the partners. The procedures should ,e impartial and should allo! the !eaker party an opportunity to appeal the stronger party=s decisions. Finally5 the stronger party should ,e !illing to e>plain all its decisions. &iff" + Topic" 10.
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