Fabien is a department head in a company that produces hard drives. He realizes that the resources needed to create the hard drives have not been received from the vendors. There is now a backlog of orders that cannot be filled because there are not enough resources to make the hard drives. Fabien thinks that the problem must be in the information flow in the supply chain which is causing the resources to be incorrectly ordered from the vendors, and therefore, incorrectly processed by the vendors. Based on this information, is Fabien correct? Why or why not?

Fabien is correct that information flow is the issue. However, the issue is actually that the vendors are not fulfilling orders properly, and therefore, the company cannot produce the hard drives.

Fabien is correct that the problem with the information flow is caused by incorrect ordering and, therefore, incorrect processing of orders.

Fabien is incorrect. The problem is actually originating in the material flow in the supply chain since there are issues with orders for materials needed to produce the hard drives.

Fabien is incorrect. The problem is originating in the financial flow of the supply chain; the vendor has most likely not received payment and is withholding shipment until payment is received.