7 - Supply Chain Coordination Flashcards
1
Q
Why do we have to coordinate supply chains?
A
Each stage of the supply chain acts locally otherwise. This causes numerous problems.
2
Q
How is coordination achieved?
A
Aligning goals and incentives, improving information exchange and accuracy, designing price strategies to stabilize orders, and building strategic partners and trust.
3
Q
How does the Bullwhip Effect behave further down the line from customer to supplier?
A
It increases. This means that there is a spike in how much of a product is needed at each station.
4
Q
What are the causes of the Bullwhip Effect?
A
Order cycle and lot size, estimation error or trend anticipation, supply lag with time critical products
