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SUPPLY REQUIREMENT (KEY ISSUES (Safety and Quality Product (the pressure…
SUPPLY REQUIREMENT
KEY ISSUES
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Shorter Lead Time
with shorter product life cycles and changing market demand, companies are forced to embark on a lean journey
RISK
Control Risk
control risk is assumption, rules, systems and procedures that govern how an organization exerts control over the process. in terms of the supply chain, they may be order based on quantities, batch sizes, and safety stock policies.
Environment Risk
the risk associated with external and from the company's perspective, uncontrollable events
Supply Risk
the upstream equivalent of demand risk, it relates to potential or actual disturbances to the flow of product or information emanating within the network, upstream of the local company
BULLWHIP EFFECT
considered bad in logistics. it because there have the irregular order in the lower part of the supply chain development to be more distinct higher up in the supply chain. this variance can interrupt the smoothness of the supply chain process as each link in the supply chain will over or underestimate the product demand resulting in exaggerated fluctuations.
Price Variations
special discount and other cost change upset regular buying patterns, buyer want to take advantage on discounts offered during a short time period, this can cause uneven production and distorted demand information
Free Return Policies
customer may intentionally overstate demands due to shortages and then cancel when the supply becomes adequate again, without return forfeit and cancel orders; resulting in excess material
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