Two primary causes of a lack of supply chain coordination are _____________.

Information distortion and local optimization

With ________________ inventory is placed at the retailer and owned by the supplier. The retailer specifies a service level and shares demand information while the supplier makes all inventory decisions.

Vendor Managed Inventory (VMI)

______________ are important for effective supply chain coordination to succeed in practice.

Top management commitment, dedicated resources, and emphasis on communication and trust.

Align goals & incentives

Risk-sharing contracts and sell-through not sell-in.

Visible and accurate information

Share customer demand data, postponement, CPFR, CRP, VMI

Reduce lead time & fixed costs

EDI, joint shipments, standardization, ASNs, cross-docking, rationing on sales

Pricing to stabilize orders

Everyday low prices (EDLP), Long-term purchase commitments, total volume based quantity-discounts

Strategic Partnerships & Trust

Long-term partnerships, share accurate information

Misaligned Incentives

Local optimization, sales force incentives

Information poorly shared

Forecasting based on orders, lack of information sharing

Operational inefficiencies

Large lot sizes, long lead times, shortage gaming

Pricing fluctuations

Trade promotions, lot-sized based quantity discounts

Behavioral barriers

Blaming, lack of trust, inability to learn from consequences.

________________ refers to acquiring abilities to produce goods or services previously purchased from an external provider whereas ____________ refers to moving a business function to an external organization.

Vertical integration; outsourcing

___________ refers to what extent problems with delays, disruptions, poor quality, and low yields affect the production and distribution of products in the supply chain whereas ____________ refers to the degree to which customer needs are difficult to predict based on high variety, customization, and rapidly changing requirements.

Supply uncertainty; demand uncertainty

Which of the following is NOT a characteristic of efficient supply chain strategies?

Select suppliers based on speed and flexibility.

Complexity of System-Wide Plans

Supply chains are dynamic systems with tradeoffs at multiple levels and conflicting local objectives

Alignment & Consistency

SCM strategies should be well-aligned with those of other functional areas

Uncertainty & Risk

Supply-side and demand-side risks are inherent in every supply chain and intensified by globalization

Tailored Approaches

Match SCM strategies to various market segments and avoid one-size-fits-all strategies

Airfreight

Expensive but rapid, reliable delivery well-suited for small, time-sensitive shipments

Package Carriers

Expensive but fast and flexible for light loads

Trucking

Mode used to ship majority of goods domestically

Rail

Inexpensive but limited flexibility. Best suited for large, low-value, non-urgent shipments

Waterways

Dominant mode for global shipping. Inexpensive but very slow and subject to delays. Often used for bulky cargo or commodities

The __________ highlighted in the video refers to ___________________.

Bullwhip effect; amplification of demand variability upstream in the supply chain.

Single stage control of replenishment or _____________ can help overcome exaggerated demand forecasts.

Vendor managed inventories

All of the following factors contribute to congestion at the ports EXCEPT:

Robots and software that increase loading and unloading efficiency.

Global supply chains have brought ___________ compared to what we might otherwise see.

increased variety and lower cost

Which of the following is FALSE regarding transportation via cargo ships?

Smaller ships face greater economies of scale but also greater risks of delays and disruptions due to bottlenecks.