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SUPPLY REQUIREMENT (Briefly explain the key issues in supple chain…
SUPPLY REQUIREMENT
Briefly explain the key issues in supple chain
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Supply contracts
Relationship between suppliers and buyers are
established by means of supply contracts that specify
pricing and volume discounts, delivery lead times, quality,
returns, and so forth
Product design
The design of the product is a cost for the company.A good design help the company is important in the SCM area
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Distribution strategy
To distribute the firm's productsuch as the classical distributionstrategy or direct shipping.
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Discuss the drivers of risk in supply requirement
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FORECAST
inaccurate forecast due to long lead
time, variety, short life cycle etc
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bullwhip effect
The bullwhip effect can be explained as an occurrence detected by the supply chain where orders sent to the manufacturer and supplier create larger variance then the sales to the end customer.
No,it is not good for business especially in the logistic department.This is because the irregular order increase the cost of the business. For example the retailer will have to increase demand by dropping prices or finding more customers by marketing and advertising,