Question

1. Define and explain the term “bullwhip effect.”
2. Define the dimensions of service quality. Why are the service quality dimensions different from the dimensions of the quality of physical goods?

Answer 1

ANSWER :1. Bullwhip effect is a phenomenon of supply chain reflecting the impact of small fluctuations in the demand of inputs at retail level which results into increasing or larger fluctuation in the demand of inputs at wholesale, distributor and manufacturer level. Bullwhip effects arises due to irregular orders and demands of customers at retail level as the retailer has to adjust according to tthe demand of the customers thus it has to adjust its its supply chain on the basis of demand in the market which effects the firm, producing unit, wholeseller, producer and many more parties and is known as bullwhip effect. For example;

A retailer keeps 100 packets of a product as a stock and sell 25 packets daily on an average but one day the demand for the product arises and retailer sells 70 packets of that product which results into increase in the demand for the product and retailer have to kept more stocks than normal which put effects upon distributor and distributor put effect upon producer this it is bullwhip effect.

ANSWER :2. DIMENSIONS OF SERVICE QUALITY

(i) TANGIBILITY: The customers prefers the services over its copetitors by comparing tangailbe aspects of the services offered by different firms as what physical facilities are offered communication materials etc.

(ii) RELIABILITY: The services offered must be reliable and provide the standard quality more accurately as the people generally prefer those company services which keeps up their promises and core service attributes.

(iii) RESPONSIVENESS: This dimension emphsizes attentiveness and promptness while dealing with customers requests and how the company solve their problem with in limited time.

(iiii) ASSURANCE: This dimension helps to build up trusts and confidence among its customers by providing quality services as the customers perceives higher risks as what they feel about service if they feel bad they wil change their services.

(v) EMPATHY: The firm offering services must pay core attention to each and aevery customers personally to fullfill and satisfy their needs as this will create loyalty and trusts for the firm for very long.

The dimensions of service quality is different from dimensions of physical goods quality because the physical goods have physical presence as these are tangiable goods as physical goods have their presence we can see i,t touch it , fell it while the service qulaity are intaigiable in nature and dont have any phsical presence. The physical goods can be stored for future while the services cannot be stored for future. Physical goods dimension depends upon durability as how long goods survive while it is not in services.