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| Section | Objectives |
|---|---|
| Topic 1: Demand Planning and Forecasting | - Issues and Trade-offs in Global Supply Chain Management - Spreadsheet Newsvendor Models - Supply Chain Issues for Short Life Cycle Products - Revenue Management - Integrated View of Procurement, Manufacturing and Operations Management - Demand Forecasting and Purchase Price Variance (PPV) Savings |
| Topic 2: Principles of Supply Chain Management & Logistics | - Factors Affecting Supply Chain Management - Supply Chain Processes - Introduction to Supply Chain Management - Management Components of Supply Chain Management |
| Topic 3: Distribution and Operations Management | - Warehouse Management - Stock Management - Introduction to Distribution Network - Transport Management - Order Management |
| Topic 4: Major Supply Chain Issues: Sourcing Materials and Services | - Introduction to Global Supply Chain Management - Inventory Management - Major Challenges in Supply Chain Management Today - Developing Productive Supplier Relationships in a Competitive Market - Role of Logistics in Supply Chains |
| Topic 5: E-Supply Chain Management | - Warehouse Management System (WMS) - Big Data and IoT in Supply Chain - Differences Between Logistics and Supply Chain Management - Information Flows and Information Systems Integration - Modern Fulfilment Tools and Applications in Supply Chain |
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NEW QUESTION # 85
Improperly structured sales force incentives
Answer: B
Explanation:
Improper sales incentives can create artificial spikes in customer orders , particularly when sales personnel are rewarded according to short-term sell-in targets. If commissions or bonuses depend on reaching monthly or quarterly shipment thresholds, sales representatives have a strong incentive to persuade distributors or retailers to purchase additional quantities before the evaluation period ends.
These orders may not reflect actual final-customer consumption. The predictable pattern is a surge in orders near the end of the measurement period followed by weak orders at the beginning of the next period. This increases order variability and contributes directly to the bullwhip effect.
A better structure aligns sales incentives with sell-through, sustained customer demand, inventory health, or overall supply-chain profitability rather than merely the quantity pushed into downstream channels. This reduces the incentive to advance future purchases artificially into the current reporting period.
Supply-chain coordination material identifies improperly structured sales-force incentives as a major incentive obstacle and documents their tendency to create end-of-period order spikes.
Thus, option C accurately describes both the behavioral consequence and the operational impact of poorly designed sales compensation.
Reference Topic: Leadership and Organizational Change - Sales Incentives, Goal Alignment, and Supply Chain Coordination.
NEW QUESTION # 86
When demand is steady, cycle inventory and lot size are related as