1. About incentive conflicts:
As the whole supply chain work together to satisfy demand, their ultra goals are aligned, so there are no incentive conflicts in the supply chain. | ||||||||||||||||||||||||||||||||||||||
Within a business, as all departments / function areas work together to deliver the best results, there are no internal incentive conflicts. | ||||||||||||||||||||||||||||||||||||||
Quantity discount is one way to mitigate the incentive conflicts. | ||||||||||||||||||||||||||||||||||||||
Incentive conflicts can be entirely removed if every piece of information is shared along the supply chain.
2. About supply chain contracts:
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