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Effect of Lack of Coordination on Performance?
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written 7.3 years ago by
teamques10
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- Manufacturing cost (increases)
- Inventory cost (increases)
- Replenishment lead time (increases)
- Transportation cost (increases)
- Labor cost for shipping and receiving (increases)
- Level of product availability (decreases)
- Relationships across the supply chain (worsens)
- Profitability (decreases)
- The bullwhip effect reduces supply chain profitability by making it more expensive to provide a given level of product availability
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