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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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Discuss the drivers of risk in supply requirement?
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forecasts
Inaccurate forecasts due to long lead times, seasonality,
product variety and short life cycle
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What is bullwhip effect? Is it good or bad in logistics? Explain your answer.
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.
These irregular orders in the lower part of the supply chain develop 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.
So, it is bad to logistics