What is the global optimization

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Question: In supply chain management, when always emphasize the global optimization, i.e. the policy should be designed so the profit of the whole supply chain should be maximized instead of a single firm's profit. But in reality, we always see that some powerful players dominate the supply chain. For example, Wal-Mart has the power to request its suppliers to open their financial books and disclose their costs. It can also require its top suppliers to adopt new technologies like RFID. The question is should giant firms like Wal-Mart care about the total supply chain profitability when they make decisions? Why, why not?

Reference no: EM131889894

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