Local optimization is a supply-chain complication best described as
A) optimizing one's local area without full knowledge of organizational needs
B) obtaining very high production efficiency in a decentralized supply chain
C) the prerequisite of global optimization
D) the result of supply chains built on suppliers with compatible corporate cultures
E) the opposite of the bullwhip effect

Question

Quizplus · Accepted Answer

Local optimization refers to optimizing a particular part or area of a supply chain without considering the impact it may have on other areas of the supply chain. This can be a result of a lack of communication or coordination between different parts of the supply chain, or an overemphasis on individual performance metrics. It can lead to inefficiencies and disruptions in the overall supply chain.

Local Optimization Is a Supply-Chain Complication Best Described as