Asked by Mckay Hilton on May 07, 2024

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Coordination requires every stage of the supply chain to focus on

A) the functional revenues for each supply chain member.
B) the functional profits for each supply chain member.
C) the functional costs for each supply chain member.
D) supply chain surplus.

Supply Chain Surplus

The difference between the value generated by the final product and the total cost incurred in the supply chain to produce and deliver the product.

Functional Costs

Expenses directly associated with the operational activities of a business, such as production, marketing, and distribution.

Functional Revenues

Functional revenues refer to the income generated from the primary activities of a business or organization, directly related to its core operations.

  • Acknowledge the importance of aligning goals and incentives for better supply chain coordination.
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Zybrea KnightMay 08, 2024
Final Answer :
D
Explanation :
Coordination in a supply chain requires every stage to focus on maximizing the overall supply chain surplus, rather than just their individual functional revenues or profits or minimizing their functional costs. Maximizing the supply chain surplus involves achieving a balance between the costs and benefits of supply chain activities that result in the highest net value created for the supply chain as a whole.