Asked by Umari Gordon on May 07, 2024
Verified
Which method would serve to reduce the information distortion in a supply chain consisting of a fabricator,manufacturer,supplier,and a retailer?
A) Make both the fabricator and retailer responsible for all decisions regarding product inventories at the retailer.
B) Make the manufacturer responsible for all decisions regarding product inventories at the retailer.
C) Make the supplier responsible for all decisions regarding product inventories at the retailer.
D) Make the customer responsible for all decisions regarding product inventories at the retailer.
Information Distortion
The loss of accuracy or integrity in the transmission of information along a supply chain, leading to operational inefficiencies.
- Become aware of methods to handle coordination complications in supply chains.
Verified Answer
GS
Gurjeet SinghMay 09, 2024
Final Answer :
B
Explanation :
Making the manufacturer responsible for all decisions regarding product inventories at the retailer is the best choice to reduce the information distortion in the supply chain. This approach would allow for better communication between the fabricator, manufacturer, supplier, and retailer, and reduce the chances of inaccurate or incomplete information being passed along the supply chain. The manufacturer would have a more comprehensive understanding of the supply chain's needs and would be better equipped to make informed decisions about inventory management.
Learning Objectives
- Become aware of methods to handle coordination complications in supply chains.
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