Bullwhip Effect Through the numerous stages of a supply chain; key factors such as time and supply of order decisions‚ demand for the supply‚ lack of communication and disorganization can result in one of the most common problems in supply chain management. This common problem is known as the bullwhip effect; also sometimes the whiplash effect. In this blog post we will explain this concept and outline some of the contributing factors to this issue. [pic] The
Premium Supply chain management
during a product’s life cycle? If not‚ explain why? If it is possible‚ what are some specific examples of products for which the appropriate supply chain changed? 3. (20%) Bullwhip a) Why bullwhip occurs in a supply chain? b) Does that contradict with the risk pooling in terms of variability? Explain. c) Can the bullwhip be alleviated if the number of levels for the supply chain is reduced (e.g. eliminate the distributors)? If so‚ why don’t we just keep the supply chain as flat as possible (i
Premium Logistics Personal computer Supply chain management
plans and forecasts from the people driving demand: marketing‚ sales promotions‚ new product developments etc. The aim is to minimize out-of-stock (OOS) situations and excessive cost of supply due to spiky demand. Much attention has been drawn to the bullwhip effect. This occurs when demand patterns are extremely volatile‚ usually as a result of sales promotions‚ and it has the unintended consequences of driving up supply chain costs and service issues‚ due to supply capacity being unable to meet the
Premium Supply chain management Supply chain Supply and demand
Direct Sales and Build-to-Order Model: Dell’s computers‚ workstations‚ and servers are built-to-order and none are produced for inventory purposes which clearly cuts Dell’s cost on inventory. Dell customers could order through their website or even via phone‚ custom-made servers and workstations based on the needs of their applications. For desktop and laptop‚ customers are able to order whatever configuration of microprocessor speed‚ random access memory (RAM)‚ hard-disk capacity‚ CD-ROM drive
Premium Supply chain management Supply chain Supply chain management terms
planning are further challenged by managers’ reliance on “local” rather than chain-wide retail demand to make key operational decisions. A frequent consequence is the bullwhip effect . Using two case studies‚ Tonya and Ram show how information sharing – both within the company’s boundaries and with external partners – can mitigate the bullwhip effect and reduce supplychain costs. the retail level. Each individual company in the supply chain forecasts its demand‚ plans its stocking levels‚ and makes
Premium Supply chain management Inventory Supply chain
This report will compare and contrast the two inventory systems while also looking at their pros and cons. A section of the study will review other hybrid review systems‚ usually a combination of the perpetual and periodic review system. The bullwhip effect will also be discussed and put into context of how it affects inventory management. Application of the inventory review systems in different industries will be examined as to which is used most often and why. II. OUTLINE OF THE PAPER
Premium Inventory Inventory control system Supply chain management
supply chains in the Retail Industry. Also the report examines how the supply chain is a link of suppliers and buyers and customers in turn becoming supplier. The report examines the problems associated with the supply chain a major one which is bullwhip effect. This study focuses on how ERP and SCM work together to help in solving supply chain problems and making the supply chain management of the retail industry efficient. The aim of this report is to explore various Information technology applications/solutions
Premium Supply chain management
Homework 2 Barilla Case Reading 1.Is there any evidence that Barilla faces the bullwhip effect? If so‚ what causes of the bullwhip effect are present? Yes‚ there are some evidences that Barilla is facing the bullwhip effect. The following causes are presented as below. 1) Demanding forecast. Since safety stock‚ as well as the base-stock level‚ strongly depends on these estimates‚ the user is forced to change order quantities‚ thus increasing variability. Lead-time. It is easy to see
Premium Supply chain management Inventory Sales
2008. ‘ Barilla Spa (A)’‚ Harvard Business School Case. Kildow‚ B. A 2011. A supply chain management guide to business continuity. American Management Association‚ New York. Lee‚ HL 1997. ’The Bullwhip effect in Supply Chain ’‚ Sloan Management Review‚ Vol. 3‚ No. 3‚ pp.93 Ram‚ R 2001. ’Taming the Bullwhip Effect ’‚ Intelligent Enterprise‚ Vol. 4. No. 9. pp. 58 Walsh‚ P. R 2011. "Creating a “values” chain for sustainable development in developing nations: where Maslow meets Porter." Environment‚
Premium Management Strategic management Project management
Name: Shabei Qian Team #: 15 Position: Retailor Beer Game Report 1. For the first 3 weeks I just ordered the weekly demand because the demand was low and we had enough inventory. When there was a spike and we had potential stock out‚ I realized that I needed to hold more safety stock‚ I just ordered 2*weekly demand for each week. When there was a back order‚ I ordered the # of back order plus weekly demand. For the first 3 weeks I just ordered the weekly demand because the demand
Premium Inventory Holding cost Supply chain management