11.Which of the following is not an opportunity for effective management in the supply chain? A. accurate "pull" data B. vendor-managed inventory C. postponement D. local optimization
Question
11.Which of the following is not an opportunity for effective management in the supply chain? A. accurate "pull" data B. vendor-managed inventory C. postponement D. local optimization
Solution
The correct answer is D. Local optimization.
Here's why:
A. Accurate "pull" data: This is an opportunity for effective management in the supply chain because it allows companies to accurately forecast demand and adjust their production schedules accordingly.
B. Vendor-managed inventory: This is also an opportunity for effective management in the supply chain. In this case, the vendor takes responsibility for managing the inventory, which can lead to cost savings and improved service levels.
C. Postponement: This is a strategy where certain activities in the supply chain are delayed until customer demand is known. This can lead to cost savings and improved customer service.
D. Local optimization: This is not an opportunity for effective management in the supply chain. Local optimization refers to optimizing a single function or department without considering the impact on the entire supply chain. This can lead to sub-optimal results for the overall supply chain. Therefore, the answer is D.
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