Which of the following is not a reason cooperation and trust within the supply chain help improve performance?
A) A more natural aligning of incentives and objectives is achieved.
B) Action-oriented managerial levers to achieve coordination become easier to implement.
C) An increase in supply chain productivity results, either by elimination of duplicated effort or by allocating effort to the appropriate stage.
D) Appropriate pricing schemes are harder to achieve if both parties are aiming for the common good.
E) A greater sharing of detailed sales and production information results.

Question

Quizplus · Accepted Answer

The statement that appropriate pricing schemes are harder to achieve if both parties are aiming for the common good is not a reason why cooperation and trust within the supply chain help improve performance. In fact, a common goal and mutual trust can help parties in a supply chain to negotiate and achieve fair pricing schemes that benefit both parties. The other options (A, B, C, and E) explain how cooperation and trust improve performance in the supply chain by aligning incentives and objectives, enabling coordination, improving productivity, and promoting information sharing.

Which of the Following Is Not a Reason Cooperation and Trust