Question: The supply chain game ( 3 echelons ) has been modified to have different initial effective inventories to those presented in Workshop 5 ( you
The supply chain game echelons has been modified to have different initial effective inventories to those presented in Workshop you can access the game here Imagine you are the current supply chain manager tasked with remedying the current situation and ensuring all customer demand is satisfied the demand pattern is random, between and per turn Which of the following statements best describes current state of the supply chain, and the potential issues that will be faced if the effective inventory issue is not addressed? The potential issue of not addressing the effective inventory problem is increased operational costs due to excessively high inventory levels across the downstream sections of the supply chain. However, the high inventory levels may improve the likelihood of satisfying all customer demand The supply chain's current state reflects a wellcoordinated system, as the high initial effective inventories facilitate faster response times to changing customer demands. Nonetheless, the high inventories may lead to higher costs and inefficiencies if not managed properly The current state of the supply chain indicates efficient inventory management due to the high initial effective inventories throughput the supply chain. These factors potentially lead to increased holding costs, while reducing the risk of stockouts and ensuring the capacity to satisfy all customer demand If the effective inventory issue is not addressed upstream, the supply chain may face difficulties in optimizing inventory flows and may experience excess stocks in some areas and stockouts in others. The variability of effective inventory throughout the supply chain may reduce the ability for flows to occur efficiently and satisfy all customer demand The supply chain's current state signifies superior performance, as the lower initial effective inventories lead to reduced lead times and improved customer satisfaction. Despite this, the high inventories may result in excess stock and increased costs The supply chains current state suggests a robust system, as the lower initial effective inventories reduce the risk of obsolescence. However, increasing inventories in the middle parts of the supply chain may lead to shortages and difficulties in meeting customer demand Failure to address the effective inventory issue may result in higher carrying costs and tie up capital in excess inventory, specifically for the manufacturer. This excessive inventory may reduce the ability to efficiently satisfy all customer demand The potential issue of not addressing the effective inventory problem is decreased competitiveness due to higher inventory costs and reduced leanness in the supply chain. However, the low inventory levels may increase the likelihood of satisfying all customer demand.Which one is correct?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
