Question

1Write some of the risks in international logistics?

2.What is Bullwhip effect? What are the major cauyes ses of the bullwhip effect?

Answer 1

1. International logistics is becoming quite an important aspect of a business and the primary reason behind that is globalization of organizations which has actually enhanced the process of international logistics. There are various risk factors associated with international logistics and they are:

a. The supply chain may possess quite a few number of different organizations.

b. The cost of handling is quite high.

c. Trade regulations may vary based on states and countries which may leadbti discrepancies.

d. If the distance is more then the mode of transport will also be more than one involving various modes like roadways. Airways etc.

2. Bullwhip effect is nothing but the uncertainty that arises due to discrepancy in the information or communication that is conveyed throughout the supply chain. The major causes of Bullwhip effect are:

a. Customers returning or turning back orders.

b. Sales promotion done without any forecasting may lead to Bullwhip effect.

c. Lack of proper planning and estimating the trend.

d. Communication gap between the stakeholders.