Define supply chain profitability. How is it different from individual organizationalprofitability?
What will be an ideal response?
Supply chain profitability is the difference between the sum of the revenue generated
by the supply chain and the sum of the costs that all organizations in the supply chain incur to
obtain that revenue. In general, the maximum profit to the supply chain will not occur if each
organization in the supply chain maximizes its own profits in isolation. Usually, the profitability
of the supply chain increases if one or more of the organizations operate at less than their own
maximum profitability.
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How is the contribution margin ratio calculated?
What will be an ideal response
Disadvantages of joint venturing can include all of the following except:
A) joint venture partners must share rewards as well as risks. B) joint ventures allow partners to achieve synergy. C) joint ventures can have the potential for conflict between partners. D) a dynamic joint venture partner can evolve into a strong competitor. E) a company incurs very significant costs by joint venturing.