Which of the following results can be expected from sharing a common understanding of demand and consumption patterns among supply chain participants?

Which of the following results can be expected from sharing a common understanding of demand and consumption patterns among supply chain participants?

A. Improved transparency of collaboration relationships

B. Increased performance in balanced scorecard

C. Reduced inventory levels for key items

D. Better synchronization of planning and operations

View Answer

Answer: D

Explanation:

Context: Sharing demand and consumption patterns among supply chain participants is crucial for effective supply chain management.

Options Breakdown:

A. Improved transparency of collaboration relationships: While sharing information can improve transparency, this is a secondary result rather than a primary expected outcome.

B. Increased performance in balanced scorecard: This is too broad and indirect. Balanced scorecard performance involves many factors beyond demand and consumption patterns.

C. Reduced inventory levels for key items: This can happen but is a consequence of better planning and operations.

D. Better synchronization of planning and operations: The primary result of sharing a common understanding of demand and consumption patterns is that it aligns production schedules, inventory management, and replenishment strategies.

Correct Answer Justification: Effective sharing of demand and consumption data leads to coordinated planning and operational activities, ensuring that supply chain activities are well-aligned with actual market demands.

Reference: Supply chain integration literature

Case studies on demand-driven supply chain management