Incentive obstacles refer to situations where incentives offered to different stages or participants in a supply chain lead to actions that increase variability and reduce total supply chain profits.

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Incentive obstacles are indeed situations where incentives offered to different stages or participants in a supply chain can create misalignments and lead to actions that increase variability and reduce total supply chain profits. This happens when each participant in the supply chain acts in their individual best interest, rather than in the best interest of the whole supply chain.

Incentive Obstacles Refer to Situations Where Incentives Offered to Different