Consider a simple supply chain consisting of a manufacturer, a distributor and retailers. Which member of...

Consider a simple supply chain consisting of a manufacturer, a distributor and retailers. Which member of the suply chain faces the highest level of fluctuating demand? Discuss the effective means for reducing the level of demand fluctuation.

Solutions

Expert Solution

Bullwhip is caused when there is slight fluctuations in the demands at customer end and it the variations gets carry forwarded significant with high variability creeping as the chain passes.

In the simple supply chain retailer is directly in contact with customer and in the first stage of bullwhip effect there is less variability the variability increases as the stages passes by. So there exists a high variability for the orders they distributors keep to manufacturers.

The following are effective means through which demand fluctuations can be controlled :

1. High degree of collaboration with customers and suppliers and should facilitate the uniform flow of information across all the channels from retailer to manufacturer.

2. Improve forecast accuracy.

3. Going with demand driven supply chain approach

4. Enable faster decisions with viability and approach which focuses on high level of transparency

I hope i could able to clear your doubts, do help with a like if you are satisfied with the answer

keosha answered 8 months ago

Next > < Previous

Related Solutions

Consider a supply chain consisting of a part supplier, a manufacturer (mfr.), the retailer, and the...

Consider a supply chain consisting of a part supplier, a manufacturer (mfr.), the retailer, and the customer. Suppose the customer’s reservation price of the machine is $200. The retail price is $150. The wholesale price between the mfr. and the dealer is $100. The dealer’s other retail-related cost is $20. The mfr. produces the product at $30 as the production cost and pays the supplier $20 to buy the parts needed. The supplier’s production cost is $10. Q1. Please calculate...

Consider a supply chain where a manufacturer sells to a distributor who sells to a wholesaler who sells to a retailer.

Bullwhip Effect:Consider a supply chain where a manufacturer sells to a distributor who sells to a wholesaler who sells to a retailer. Last year, the retailer's weekly variance of demand was 4000 units. The weekly variance of orders was 5000; 8000; 12,000; and 17,000 units for the retailer, wholesaler, distributor, and manufacturer, respectively. (Note that the variance of orders equals the variance of demand for that firm's supplier.)(a) Calculate the bullwhip measure for the retailer.(b) Calculate the bullwhip measure for...

Consider the supply chain illustrated below: manufacturer->distributor->wholesaler->retailer. Last year the retailer's weekly variance of demand was...

Consider the supply chain illustrated below: manufacturer->distributor->wholesaler->retailer. Last year the retailer's weekly variance of demand was 210 units. The variance of orders was 480, 590, 770, and 1,320 units, for the retailer, wholesaler, distributor, and manufacturer, respectively. (Note that the variance of orders equals the variance of demand for that firm's supplier.) A) The bullwhip measure for the retailer is B) The bullwhip measure for the wholesaler is C) The bullwhip measure for the distributor is D) The bullwhip measure...

Why is supply chain management and inventory control important to retailers?

what are some of the best supply chain practices for a beverage manufacturer?

You are the appointed Supply Chain Manager for a company that manufactures and sells its products to retailers and to end consumers.

MGMT5018 Individual Assignment 1 Week 3 MGMT 5018 Individual Assignment # 1, Due in Week 4 - 15% of Overall Mark You are the appointed Supply Chain Manager for a company that manufactures and sells its products to retailers and to end consumers. The company uses its own trucks to deliver to retailers and UPS for its online orders to deliver to end consumers. Apply your understanding of the 5 components of Supply Chain by explaining to me as your...

Consider a simple RL circuit consisting of an ideal battery with voltage 30 V , a...

Consider a simple RL circuit consisting of an ideal battery with voltage 30 V , a resistor of resistance 15 Ω, an inductor of inductance 7.0 H, and a switch all in series. The switch is initially open. a) Determine the ratio of the voltage across the resistor to the voltage across the inductor when the current has a value of 1.5 A. b) How much time has elapsed if the voltage across the resistor is 20 V ?

Astor Industrial Supply is a manufacturer and distributor of standard and custom gaskets, seals, converted products,...

Astor Industrial Supply is a manufacturer and distributor of standard and custom gaskets, seals, converted products, and machined parts. It provides sealing and other industrial solutions to markets ranging from defense, aerospace, power generation, mining, wastewater treatment, electronics, pharmaceutical, and food and beverage. On January 2, 2016, Travis Allen, the executive vice president and CFO of Astor Company, was preparing for the January meeting of the Capital Budget Committee (CBC).The CBC is considering 7 projects representing over $30,000,000 in capital...

Which part of the supply chain link is responsible for managing it?

Question 4 Foxcomp, an electronics and computer manufacturer with a global supply chain, wants to add...

Question 4 Foxcomp, an electronics and computer manufacturer with a global supply chain, wants to add a new supplier for some of its component parts, and the suppliers it's considering are in Taiwan, India, Thailand, the Philippines. As part of its risk management program, Foxcomp wants to assess the possible impact of a supplier shutdown in the event of a natural disaster, such a flood, fire, tsunami, or an earthquake. The following payoff table summarizes the losses (in millions of...

Subjects