Asked by Tseng Kevin on Jul 17, 2024

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With supply and demand management decisions being made independently,

A) it is increasingly difficult to coordinate the supply chain,thereby increasing profit.
B) it is increasingly difficult to coordinate the supply chain,thereby decreasing profit.
C) it is easier to coordinate the supply chain,thereby decreasing profit.
D) it is easier to coordinate the supply chain,thereby increasing profit.

Supply Chain

The entire system of producing and delivering a product or service, from the supplier of raw materials to the end user.

Coordination

The organization and alignment of activities, efforts, and policies to ensure smooth operation and achievement of common objectives.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

  • Analyze the impact of coordinating supply and demand decisions on supply chain profitability.
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KW
Kendel WibbingJul 18, 2024
Final Answer :
B
Explanation :
When supply and demand management decisions are made independently, it becomes increasingly difficult to coordinate the supply chain, leading to an increase in costs and a decrease in profits. In such situations, companies may struggle to meet customer demand while avoiding overstocking, leading to lost sales or surplus inventory. This lack of synchronization in supply chain management can increase costs, reduce efficiency, and negatively impact the profitability of a company.