Ch: 10 Coordination in a Supply Chain

Which method would serve to reduce the information distortion in a supply chain consisting of a fabricator, manufacturer, supplier, and a retailer?

Make the manufacturer responsible for all decisions regarding product inventories at the retailer.

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?

Manufacturing

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?

Quality

What is the responsibility of a designated category leader?

The category leader manages replenishment decisions for all suppliers

The fact that each stage in a supply chain forecasts demand based on the stream of orders received from the downstream stage results in

a magnification of fluctuations in demand as we move up the supply chain from the retailer to the manufacturer

Managers can improve coordination within the supply chain by

aligning goals and incentives

The bullwhip effect moves a supply chain

away from the efficient frontier by increasing cost and decreasing responsiveness

Problems in learning within organizations that contribute to the bullwhip effect are referred to as

behavioral obstacles

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

buyback contracts

Successful collaborative planning, forecasting and replenishment must be built on a foundation of

data synchronization and established standards for exchanging information

Operational improvements that reduce lot sizes can dampen the bullwhip effect by

decreasing the amount of fluctuation that can accumulate between any pair of stages of a supply chain

The bullwhip effect causes

different stages of the supply chain to have a very different estimate of what demand looks like.

The most common form of collaboration observed in practice is

distribution center replenishment.

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

do not maximize total supply chain profits

The bullwhip effect

hurts the relationships between different stages of the supply chain

A fundamental aspect of successful collaboration is

identification and resolution of exceptions

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 are referred to as

incentive obstacles

Situations where demand information is distorted as it moves between different stages of the supply chain, leading to increased variability in orders within the supply chain are referred to as

information processing obstacles

A high fashion retailer should rely on

interpretation of industry trends and customer tastes to forecast next season's demand

If retailers sell products from competing manufacturers in a VMI system,

inventory at the retailer will be higher than optimal

Forward buying results in

large orders during the promotion period followed by very small orders after that

The lack of information sharing between the retailer and manufacturer

leads to a large fluctuation in manufacturer orders

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

level of product availability

The lack of coordination within a supply chain will result in a decrease in

level of product availability

The replenishment decision in a VMI system is owned by the

manufacturer

Long term boom and bust cycles that mimic the bullwhip effect include

memory chips for personal computers

Actions taken in the course of placing and filling orders that lead to an increase in variability are referred to as

operational obstacles

One appropriate measure to reduce replenishment lead times is to

order electronically

Quite often in a VMI system, the inventory is

owned by the supplier until it is sold by the retailer

Situations in which the pricing policies for a product lead to an increase in variability of orders placed are referred to as

pricing obstacles

The bullwhip effect decreases

product availability

The bullwhip effect decreases

profitability

The lack of coordination within a supply chain will result in an increase in

replenishment lead time

The local hominy man is anticipating a bumper crop this year, so he arranges with a chain of grocery stores to stock up on his hominy as part of a Homina Homina Hominy campaign to lure customers in to the stores during September for cans of the divinely salty, yet nutritious vegetable. This approach is an example of

retail event collaboration

In a VMI system, the ________ must share demand information with the ________.

retailer, manufacturer

Trading partners collaborate on store-level POS forecasts in

store replenishment collaboration

Coordination requires every stage of the supply chain to focus on

supply chain surplus

Information distortion is exaggerated by the fact that

supply chains today produce a large amount of product variety

Retailers of all sizes can explore CPFR as a strategic option, but in order to be scalable, ________ is needed

technology

Improperly structured sales force incentives

tend to create spikes in customer orders

In a continuous replenishment program, the wholesaler or manufacturer replenishes a retailer regularly based on

the POS data of the retailer

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 bullwhip effect

The situation in which fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers is known as

the bullwhip effect

The full benefit of coordination is achieved when

the entire supply chain network is coordinated

The sales typically measured by a manufacturer are

the quantity sold to distributors or retailers (sell-in).

In most instances, CRP systems are driven by

the withdrawals of inventory from retailer warehouses

One of the best ways to solve coordination problems is

through teams comprised of different members of the supply chain

All transportation decisions should be evaluated based on their effect on

total costs

A manufacturer with significant market power should use

two-part tariffs and volume discounts to achieve coordination

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

variability of orders is magnified up the supply chain