January 2023
Intermediate to advanced
250 pages
11h 7m
English
Content preview from Logistics and Supply Chain Management, 6th Edition
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Collaboration and trust in the supply chain
It will be clear that one of the key ingredients of supply chain management excellence is a high level of collaboration and, hence, trust across the network.
The benefits of collaboration are well illustrated by the oft-quoted example of the ‘prisoner’s dilemma’. The scenario is that you and your partner have been arrested on suspicion of robbing a bank. You are both put in separate cells and not allowed to communicate with each other. The police officer tells you both independently that you will be leniently treated if you confess, but less well so if you do not.
In fact the precise penalties are given to you as follows:
| Option 1: | You confess but your partner doesn’t. |
| Outcome: | You get one ... |
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