OMGT 4763 FINAL EXAM QUESTIONS
AND ANSWERS
lack of coordination increases - Correct Answers -manufacturing cost, inventory cost,
replenishment lead time, transportation cost, labor cost for shipping and receiving
lack of coordination - Correct Answers -hurts level of product availability and hurts
relationships across the entire supply chain
obstacles to coordination in a supply chain - Correct Answers -Incentive Obstacles
Information Processing Obstacles
Operational Obstacles
Pricing Obstacles
Behavioral Obstacles
Incentive Obstacles - Correct Answers -Occur when incentives offered to different
stages or participants in a supply chain lead to actions that increase variability and
reduce total supply chain profits
information processing obstacles - Correct Answers -When demand information is
distorted as it moves between different stages of the supply chain, leading to increased
variability in orders within the supply chain
Operational Obstacles - Correct Answers -Occur when placing and filling orders
increases variability
Ordering in large lots
Large replenishment lead times
Rationing and shortage gaming
Pricing Obstacles - Correct Answers -When pricing policies for a product lead to an
increase in variability of orders placed
Lot-size based quantity decisions
Price fluctuations
Behavioral Obstacles - Correct Answers -Problems in learning within organizations that
contribute to information distortion
managerial levers to achieve coordination - Correct Answers -Aligning goals and
incentives
Improving information accuracy
Improving operational performance
, Designing pricing strategies to stabilize orders
Building strategic partnerships and trust
Aligning Goals and Incentives - Correct Answers -*Align goals and incentives so that
every participant in supply chain activities works to maximize total supply chain profits
*Align goals across the supply chain
*Align incentives across functions
*Pricing for coordination
*Alter sales force incentives from sell-in (to the retailer) to sell-through (by the retailer)
Improving Information Visibility and Accuracy - Correct Answers -managers can achieve
coordination by improving the visibility and accuracy of information available to different
stages in the supply chain
Improving Operational Performance - Correct Answers --Reducing replenishment lead
time
-Reducing lot sizes
-Rationing based on past sales and sharing information to limit gaming
best strategy for demand planning - Correct Answers -better for the entire supply chain
to forecast based on end customer demand
Designing Pricing Strategies to Stabilize Orders - Correct Answers -*Encouraging
retailers to order in smaller lots and reduce forward buying
*Moving from lot size-based to volume-based quantity discounts
Stabilizing pricing
*Building strategic partnerships and trust
Strategy and Planning - Correct Answers -the partners determine the scope of the
collaboration and assign roles responsibilities and clear checkpoints. in a joint business
plan, they then identity significant events such as promotion new product introductions
store opening/closings and changes in inventory policy that affect demand and supply
Demand and Supply Management - Correct Answers -a collaborative sales forecast
projects the partners best estimate of consumer demand at the point of sale. this is then
converted to a collaborative order plan that determines future orders and delivery
requirements based on sales forecasts inventory positions and replenishment lead
times
execution - Correct Answers -as forecasts become firm they are converted to actual
orders. the fulfillment of these orders then involves production shipping receiving and
stocking of products
analysis - Correct Answers -the key analysis tasks focus on identifying exceptions and
evaluating metrics that are used to access performance
AND ANSWERS
lack of coordination increases - Correct Answers -manufacturing cost, inventory cost,
replenishment lead time, transportation cost, labor cost for shipping and receiving
lack of coordination - Correct Answers -hurts level of product availability and hurts
relationships across the entire supply chain
obstacles to coordination in a supply chain - Correct Answers -Incentive Obstacles
Information Processing Obstacles
Operational Obstacles
Pricing Obstacles
Behavioral Obstacles
Incentive Obstacles - Correct Answers -Occur when incentives offered to different
stages or participants in a supply chain lead to actions that increase variability and
reduce total supply chain profits
information processing obstacles - Correct Answers -When demand information is
distorted as it moves between different stages of the supply chain, leading to increased
variability in orders within the supply chain
Operational Obstacles - Correct Answers -Occur when placing and filling orders
increases variability
Ordering in large lots
Large replenishment lead times
Rationing and shortage gaming
Pricing Obstacles - Correct Answers -When pricing policies for a product lead to an
increase in variability of orders placed
Lot-size based quantity decisions
Price fluctuations
Behavioral Obstacles - Correct Answers -Problems in learning within organizations that
contribute to information distortion
managerial levers to achieve coordination - Correct Answers -Aligning goals and
incentives
Improving information accuracy
Improving operational performance
, Designing pricing strategies to stabilize orders
Building strategic partnerships and trust
Aligning Goals and Incentives - Correct Answers -*Align goals and incentives so that
every participant in supply chain activities works to maximize total supply chain profits
*Align goals across the supply chain
*Align incentives across functions
*Pricing for coordination
*Alter sales force incentives from sell-in (to the retailer) to sell-through (by the retailer)
Improving Information Visibility and Accuracy - Correct Answers -managers can achieve
coordination by improving the visibility and accuracy of information available to different
stages in the supply chain
Improving Operational Performance - Correct Answers --Reducing replenishment lead
time
-Reducing lot sizes
-Rationing based on past sales and sharing information to limit gaming
best strategy for demand planning - Correct Answers -better for the entire supply chain
to forecast based on end customer demand
Designing Pricing Strategies to Stabilize Orders - Correct Answers -*Encouraging
retailers to order in smaller lots and reduce forward buying
*Moving from lot size-based to volume-based quantity discounts
Stabilizing pricing
*Building strategic partnerships and trust
Strategy and Planning - Correct Answers -the partners determine the scope of the
collaboration and assign roles responsibilities and clear checkpoints. in a joint business
plan, they then identity significant events such as promotion new product introductions
store opening/closings and changes in inventory policy that affect demand and supply
Demand and Supply Management - Correct Answers -a collaborative sales forecast
projects the partners best estimate of consumer demand at the point of sale. this is then
converted to a collaborative order plan that determines future orders and delivery
requirements based on sales forecasts inventory positions and replenishment lead
times
execution - Correct Answers -as forecasts become firm they are converted to actual
orders. the fulfillment of these orders then involves production shipping receiving and
stocking of products
analysis - Correct Answers -the key analysis tasks focus on identifying exceptions and
evaluating metrics that are used to access performance
