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SUPPLY REQUIREMENT (1)Briefly explain the key issues in supple chain
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SUPPLY REQUIREMENT
1)Briefly explain the key issues in supple chain
:check:The supply chain management issue concern activities of the firm at various level of decision making, ranging from operational level to strategic level via tactical level
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:<3:Inventory control
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:no_entry: Focus on the location, storage, recording, and accounting of inventories
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:<3: Product design
:no_entry: At this level, it concern with the design of the product and it impact on total cost of the product
:no_entry: The design also determine the length of the product life cycle and the extent uncertainty associated with the demand for this product
STEP 1
. design brief
.specification
.problem solving
.presentation
STEP 2
.development
.testing
STEP 3
.implementation
.evaluation and conclusion
STEP 4
.correction made
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:<3: Customer value
:no_entry: This type of key issues means the customers value at age that increase the consumer power
:<3: Supply contract
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:no_entry: In traditional supply chain strategies, each party of the chain only focus in its own profit
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3)What is bullwhip effect? Is it good or bad in logistics? Explain your answer
:check: Bullwhip effect is the small changes of the customer’s demand a magnified of the supply chain
:warning: Bullwhip is good in logistic
:no_entry: Disorganization between each supply chain link; with ordering larger or smaller amounts of a product than is needed due to an over or under reaction to the supply chain beforehand
:no_entry:Price variations – special discounts and other cost changes can upset regular buying patterns; buyers want to take advantage on discounts offered during a short time period, this can cause uneven production and distorted demand information
:no_entry: Order batching; companies may not immediately place an order with their supplier; often accumulating the demand first. Companies may order weekly or even monthly. This creates variability in the demand as there may for instance be a surge in demand at some stage followed by no demand after
:no_entry:Free return policies; customers may intentionally overstate demands due to shortages and then cancel when the supply becomes adequate again, without return forfeit retailers will continue to exaggerate their needs and cancel orders; resulting in excess material
:no_entry:Lack of communication between each link in the supply chain makes it difficult for processes to run smoothly. Managers can perceive a product demand quite differently within different links of the supply chain and therefore order different quantities
:no_entry:Demand information – relying on past demand information to estimate current demand information of a product does not take into account any fluctuations that may occur in demand over a period of time.