Final answer:
When departments operate in functional silos, they are more focused on meeting functional standards instead of optimizing overall supply chain performance.
Step-by-step explanation:
The correct answer is Functional Silos.
When departments operate in Functional Silos, they are more focused on meeting functional standards instead of optimizing overall supply chain performance. This means that each department focuses on their own goals and objectives, without considering how their actions might impact the efficiency and effectiveness of the entire supply chain. For example, the production department may prioritize maximizing output, even if it results in excessive inventory levels that strain other parts of the supply chain. Collaboration and coordination between departments become limited, leading to inefficient processes and suboptimal performance. It's important for organizations to break down these functional silos and foster collaborative relationships across departments to achieve more effective supply chain management.