Bullwhip effect first identified by Forrester and subsequently named as such by the Procter and Gamble is the cumulative effect of distortions in demands due to inaccurate forecasts resulting in piling up of unwanted inventories and at the same time shortage of and out of stock…
Let us write or edit the essay on your topic
"How to reach an accurate demands forecasting to avoid bullwhip effect in the manufacturing level and lose of sales in the retailer level in the supply chain for finished goods"
with a personal 20% discount.
he research methodology to be undertaken to find answers for the research question for controlling the bullwhip effect right from manufacturer’s level to retailer’s level. And VMI is just one of the methods and the research has to a long way to identify an ideal method. .
According to the survey of the U.S. Commerce Department reported in 2002, trade in the United States is characterized by $ 1.1 trillion inventory for just $ 3.2 trillion of retail sales per year. The value of inventory in each of the supply chain is $ 400 billion at retail outlets, $ 290 billion at the wholesalers’ or distributors’ warehouses and $ 450 billion with manufacturers’ factory or warehouses locations. Where as, such a stockpile should be of a comfortable reserve in stock in trade, there is actually out-of-stock situation at all the points. It has been reported that 8.2 % of the shoppers still go without buying what they need and thus out-of-stock position represents 6.5 % of retail sales as a whole. Even if the retailers manage to supply alterative products, lost sales on account of this situation turn out to be 3.1% of the total sales. Though 3.1 % appears negligible, it is a substantial loss of retail margins at micro as well as macro level. And loss of customers’ goodwill is beside the point. It is noteworthy that this situation is not due to want of inventory or resources (Lee, 2002). This situation is brought about by what is called bullwhip effect which this research proposes to study.
The seemingly negligible impact of bullwhip effect actually translates into lost sales and loss of profit of significant proportions and is therefore an important area in a supply chain that needs to be analyzed for being avoided. Accurate demand forecasting is apparently the possible solution . Therefore aim and objective of this research is to ascertain how to reach an accurate demands forecasting to avoid bullwhip effect in the manufacturing level and loss of sales in the retailer ...
Cite this document
(“How to reach an accurate demands forecasting to avoid bullwhip effect Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/391173-how-to-reach-an-accurate-demands-forecasting-to-avoid-bullwhip-effect-in-the-manufacturing-level-and-lose-of-sales-in-the-retailer-level-in-the-supply-chain-for-finished-goods
(How to Reach an Accurate Demands Forecasting to Avoid Bullwhip Effect Essay)
“How to Reach an Accurate Demands Forecasting to Avoid Bullwhip Effect Essay”, n.d. https://studentshare.net/miscellaneous/391173-how-to-reach-an-accurate-demands-forecasting-to-avoid-bullwhip-effect-in-the-manufacturing-level-and-lose-of-sales-in-the-retailer-level-in-the-supply-chain-for-finished-goods.
This is because demand variations within the supply change escalate as we travel upward. Therefore when information relative to demand variations is inaccurate, the bullwhip effect can be created (Chen, Drezner, Ryan & Simchi-Levi, 2000). This research study identifies the factors causing the bullwhip effect and what steps can be taken to tame the bullwhip effect.
This essay analyzes the goal of integrating the supply Chain. As the first tier supplier, Engineering Limited needs to remain cognizant of the fact that the supply chain is made up of manufacturers, suppliers, central businesses and consumers. In this regard, the supply chain involves production, distribution, supplies and sales.
To achieve this balance, it is important to have a synergistic supply chain that will provide sustainable dominant competitive advantage to the company. This report will discuss the various aspects of the power tool company's supply chain on how it can best ensure its optimum performance that would enable the organization to realize its business objectives.
Such economies arise on account of no rise in fixed costs and production increases by a rise in the variable cost alone (The Economist, 2008). Vertical integration can be referred to as the level of ownership a firm associates with the downstream buyers and upstream suppliers.
The paper aims at defining and illustrating the need of an Accurate Business forecast for a Building construction company. Broadly, it will discuss the categories that require forecasting and the ones that are of utmost importance for the success of the company.
Heterogeneous sources of supply are sorted out, and then can be accumulated for sale to interested customers, as is done by industrial-supply firms or retail stores (Stroh, 2006). Through dispersion, the products are allocated and customers can achieve the assortment of heterogeneous products that they require to satisfy them (Kotler and Armstrong 2008).
The supply chain puts together different products from primary supplies for a particular industry or company all the way through to final consumption, which can include the return of part of the product (for example, bottles and containers) for recycling.
Over the past few years, researchers have become more focused on improving the supply chain system by different methods. Supply chain management is an important activity of every organization. This paper aims to minimize the total costs by considering various methods and
is summary will also review the business structure as well as execution method which will be set up to verify technique stages that will be used to ensure all procedures are followed adhered to when manufacturing begins.
The company has key strategic projects to decline item
An upstream member, for example, could be a retailer while an upstream member could be a manufacturer. As the orders are made by the retailer to the manufacturer, the information gets distorted and this results
6 Pages(1500 words)Assignment
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic How to reach an accurate demands forecasting to avoid bullwhip effect in the manufacturing level and lose of sales in the retailer level in the supply chain for finished goods for FREE!