1. About incentive conflicts:

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.


About supply chain contracts:

Price protection contracts are not used when the prices for products / components are stable over time.
Quantity flexibility contracts work when two parties into the contracts have the same prediction about the demand.
Quantity discount contracts usually lower the profits of the suppliers.
All of the above are true.


Which of the following is NOT a reason for the bullwhip effect in the beer distribution game?

Long production lead time
Poor supply chain visibility
The retailer is selfish
The supply chain partners do not communicate well


Which of the following material types does not include purchasing data?

Trading goods
Finished goods
Raw materials


A given customer may have only one master record



Expert Answer

 there is information gap between agents in the supply chain so by sharing the information

Incentive conflicts can be entirely removed if every piece of information is shared along the supply chain.

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