Summarize the following case study given below Coordination in Supply Chain Supply chain coordination improves if all
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Coordination in Supply Chain Supply chain coordination improves if all stages of the chain take actions that are aligned and increase total supply chain surplus. Supply chain coordination requires each stage of the supply chain to share information and take into account the impact its actions have on other stages. A lack of coordination occurs either because different stages of the supply chain have objectives that conflict or because information moving between stages is delayed and distorted. Different stages of a supply chain may have conflicting objectives if each stage has a different owner. As a result, each stage tries to maximize its own profits, resulting in actions that often diminish total supply chain profits. Not only does each stage focus on its own objectives, but information is also often distorted as it moves across the supply chain because complete information is not shared between stages. This distortion is exaggerated by the fact that supply chains today produce a large variety of products. Ford produces different models, with several options for each model. The increased variety makes it difficult for Ford to coordinate information exchange with thousands of suppliers and dealers. The fundamental challenge today is for supply chains to achieve coordination in spite of multiple ownership and increased product variety. One outcome of the lack of supply chain coordination is the bullwhip effect, in which fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to supplier. Source: https://www.linkedin.com/pulse/coordination-supply-chain-sumit-wadhawan/ [accessed: 29 August 2023] Coordination in Supply Chain Supply chain coordination improves if all stages of the chain take actions that are aligned and increase total supply chain surplus. Supply chain coordination requires each stage of the supply chain to share information and take into account the impact its actions have on other stages. A lack of coordination occurs either because different stages of the supply chain have objectives that conflict or because information moving between stages is delayed and distorted. Different stages of a supply chain may have conflicting objectives if each stage has a different owner. As a result, each stage tries to maximize its own profits, resulting in actions that often diminish total supply chain profits. Not only does each stage focus on its own objectives, but information is also often distorted as it moves across the supply chain because complete information is not shared between stages. This distortion is exaggerated by the fact that supply chains today produce a large variety of products. Ford produces different models, with several options for each model. The increased variety makes it difficult for Ford to coordinate information exchange with thousands of suppliers and dealers. The fundamental challenge today is for supply chains to achieve coordination in spite of multiple ownership and increased product variety. One outcome of the lack of supply chain coordination is the bullwhip effect, in which fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to supplier. Source: https://www.linkedin.com/pulse/coordination-supply-chain-sumit-wadhawan/ [accessed: 29 August 2023]
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