Please enable JavaScript.
Coggle requires JavaScript to display documents.
SUPPLY REQUIREMENT (3) Bullwhip effect :fire: (Is a distribution channel…
SUPPLY REQUIREMENT
3) Bullwhip effect :fire:
Is a distribution channel phenomenon in which forecast yield supply chain inefficiencies
it referent to increasing swings in inventory in response to shifts in customers demand as one moves further up the supply chain
It is
bad in Logistics
at the variance can interrupt the smoothness of supply chain process as each link in the supply chain will over/underestimate the product demand resulting in exaggerated fluctuations
Due to bullwhip effect:
-is always produce more stock to cover the demand of consumer.
-it will occur waste if the suppliers order extra more stock and the distribution also will order more from manufactu
1) The key issue in Supply Chain
:fire:
:warning:supply contract
relationships between suppliers and buyers are established by means of supply contracts that specifiy pricing and volumes discounts, delivery lead time , quality, returns and so forth.
:warning:distribution strategy
there are several strategy available such as the classical distribution strategy/direct shipper.
concerned with the distribution of the firm's product.
:warning:information technology and decisions support
much of the current interest in supply chain management was motivated by the opportunities that appeared due to the abundance of data and the savings that can be achieved by sophisticated analysis of these data.
a critical enable of effective supply chain management.
:warning: inventory control
Inventory represent costs, , the sensible approach is to hold as low as inventory as possible but businesses are forced to hold inventories as a buffer to counter the affects of an uncertain demand.
Concerned with the levers of inventories to be hold at various point in the supply chain.
2) The driver of risik in supply requirement
:fire:
:warning:Delays
-High capacity utilizations at supply source
-Inflexibility of supply source
:warning:Forecasts
-Inaccurate forecast due to long lead times, seasonability, product variety, short life cycle.
-Information distortion
:warning:Disruption
-Natural disaster
-Labor dispute
-Supplier bankruptcy
-War terrorism
:warning:System
-Information infrastructure breakdown
-Extensive systems networking