Describe the impact of behavioral obstacles on supply chain coordination
What will be an ideal response?
Answer: Behavioral obstacles refer to problems in learning within organizations that contribute to the bullwhip effect. These problems are often related to the way the supply chain is structured and the communication between different stages. Some of the behavioral obstacles are as follows:
1. Each stage of the supply chain views its actions locally and is unable to see the impact of its actions on other stages.
2. Different stages of the supply chain react to the current local situation rather than trying to identify the root causes.
3. Based on local analysis, different stages of the supply chain blame each other for the fluctuations, with successive stages in the supply chain becoming enemies rather than partners.
4. No stage of the supply chain learns from its actions over time because the most significant consequences of the actions any one stage takes occur elsewhere. The result is a vicious cycle where actions taken by a stage create the very problems that the stage blames on others.
5. A lack of trust between supply chain partners causes them to be opportunistic at the expense of overall supply chain performance. The lack of trust also results in significant duplication of effort. More important, information available at different stages is either not shared or is ignored because it is not trusted.
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