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Course Description

In a decentralized supply chain, suppliers, manufacturers, distributors, and retailers each act on their own interests, based on local information. On the other hand, in a centralized supply chain, a single entity with information about all parts of the supply chain makes decisions for each local business entity. As you progress in this lesson, you will see that a decentralized supply chain tends to produce less than what would be optimal for an integrated supply chain. This lack of efficiency comes from incentive misalignment, which happens when multiple decision makers try to optimize based on their own objectives. In this lesson, you will compare and contrast a decentralized supply chain versus an integrated supply chain. You will also examine what leads to a loss of efficiency in a decentralized supply chain and three main strategies you can use to tackle the incentive misalignment problem. For the best result, complete "Employ a Holistic Approach to Supply Chain Design: Measure and Improve Supply Chain Cash Flow Efficiency" prior to taking this lesson.

Benefits to the Learner

  • Measure the inefficiency caused by incentive misalignment
  • Understand supply chain impact points on the environment
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Type
self-paced (non-instructor led)
Dates
Sep 28, 2023 to Dec 31, 2030
Total Number of Hours
1.0
Course Fee(s)
Regular Price $0.00
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