Question: Any factor that leads to either local optimization in different stages of the supply chain or an increase in information delay, distortion, and variability within
Any factor that leads to either local optimization in different stages of the supply chain or an increase in information delay, distortion, and variability within the supply chain is an obstacle to coordination. INCENTIVES You are transportation manager at a beer distributor and your compensation is linked to the average transportation cost per unit. Lowering transportation costs will increase your annual incentive bonus. This year you are looking to replace your roof, pay for your child's college, and replace an older car. The bonus check is important to you. You have established set routes for its southern customers that run Mondays and Thursdays. When your driver arrived at a major stop on the Thursday route, the store's only employee was closing the store due to a family emergency. They could not accept the order, but really need the beer due to the big holiday weekend and a nearly fishing tournament. They ask the driver to return on Friday. As transportation manager what do you do? INFORMATION As a manufacturer, you have noticed that for the past three weeks orders for its product have increased. With this increased demand in sales, the manufacture does not have the materials necessary to maintain this new level of demand. The manufacturer will need to increase its orders to its suppliers to meet this demand. The fourth weeks sales continue to show this increase in demand. The manufacturer increases its orders from the suppliers; material arrives the next week. Production is increased to meet this rise in sales. One week later the sales return to its previous level. What happened? What should have happened
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