Supply requirement

Bullwhip effect

  1. Key issues

1.Operational level

Decision making at oeprational level will concern day to day management of activities such as scheduling, routing, lead time quotation and vehicle loading etc.

  1. Tactical level

Decision making at this level is concerned with purchasing and production functions, inventory policies and transportation strategies including the frequency with which customers are visited. these decisions will be usually updated on an annual basis

  1. Strategic level

The decision making at this level with long term objectives and with long lasting effects. this includes decisions regarding location of various facilities, including the manufacturing plant, distribution warehouses and the structure of the distribution channel

  1. Drivers of risk in supply chain
  1. Systems
  1. Delays
  1. Forecast

1.Disruption

  1. Labor dispute
  1. Supplier bankruptcy
  1. Natural disaster

4.War / Terrorism

  1. High capacity utilization at supply source
  1. Inflexibility of supply source
  1. Information infrastructure e breakdown
  1. Extensive system networking
  1. inaccurate forecast due to long lead times, seasonality, product variety, short cycle life

2.Information distortion

Bullwhip effect is a distribution channel phenomenon in which forecasts yield supply chain inefficiencies. it refers to increasing swings in inventory in response to shifts in customer demand as one moves further up the supply chain

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