Sharing sales information throughout the supply chain leads to which of the following?
A) larger stockouts
B) increased manufacturing of products not immediately needed by retailers
C) fewer manufacturing orders that had to be expedited
D) higher inventories held by each company in the supply chain

Question

Quizplus · Accepted Answer

Sharing sales information allows companies in the supply chain to better coordinate and plan their production and inventory levels. This leads to fewer manufacturing orders that need to be expedited due to unexpected demand, as well as reduced inventories held by each company since they can more accurately predict demand. It may also help prevent overproduction of products not immediately needed by retailers, leading to less waste and potentially lower costs. Large stockouts are less likely if companies can plan and adjust their production and inventory levels based on shared sales data.

Sharing Sales Information Throughout the Supply Chain Leads to Which