Situations where demand information is distorted as it moves between different stages of the supply chain,leading to increased variability in orders within the supply chain are referred to as
A) incentive obstacles.
B) information processing obstacles.
C) operational obstacles.
D) pricing obstacles.
E) behavioral obstacles.

Question

Quizplus · Accepted Answer

Information processing obstacles refer to situations where demand information is distorted as it moves between different stages of the supply chain, leading to increased variability in orders within the supply chain. This can happen due to various reasons like miscommunication, delays in transmission, inaccurate or incomplete information, etc. Such obstacles can have a significant impact on the performance of the supply chain and can lead to issues like stockouts, excess inventory, longer lead times, higher costs, and reduced customer satisfaction. Therefore, it is essential to have efficient and effective communication and information-sharing processes in place to mitigate these obstacles and improve the overall performance of the supply chain.

Situations Where Demand Information Is Distorted as It Moves Between