8.8k views
0 votes
Often, members of a supply chain have conflicting objectives, which can be a barrier to effective supply chain integration. Which of the following is an example of this?

A) Both companies agree on a fixed delivery schedule to minimize transportation costs.
B) One company insists on frequent low-volume deliveries from a supplier, transferring inventory holding costs to the vendor.
C) All members prioritize cost savings and efficiency.
D) Companies collaborate to streamline production processes for mutual benefit.

User Lxgreen
by
7.7k points

1 Answer

1 vote

Frequent deliveries, low inventory bliss for the buyer, but the supplier cries! Costs shift like sand, a supply chain tug-of-war where everyone wants less in their hands. Balancing needs, a delicate dance, lest conflicts disrupt the supply chain's trance.

The most likely example of conflicting objectives in a supply chain is:

B) One company insists on frequent low-volume deliveries from a supplier, transferring inventory holding costs to the vendor.

Here's why:

A) Both companies agreeing on a fixed delivery schedule to minimize transportation costs aligns with supply chain integration goals.

C) All members prioritizing cost savings and efficiency is ideal for effective supply chain integration, not a conflict.

D) Companies collaborating to streamline production processes also aligns with supply chain integration objectives.

In option B, the manufacturer's desire for frequent deliveries to minimize their own inventory holding costs creates a burden on the supplier. The supplier faces increased transportation costs and operational demands due to smaller, more frequent deliveries. This conflict in objectives can disrupt coordination and hinder overall supply chain efficiency.

Therefore, B) One company insists on frequent low-volume deliveries from a supplier, transferring inventory holding costs to the vendor is the most apt example of conflicting objectives in a supply chain.

User Nat Darke
by
8.2k points