cheatsheet456 - Bullwhip Effect means it increases...

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Bullwhip Effect means it increases variability as they travel up the supply chain. Centralized information – Observes customer demand, forecasts the demand mean and variance using a moving average with p demand observations, finds target inventory level based on the forecast mean and variance of demand, and places an order to the wholesaler. Decentralized information - Wholesaler and manufacturer estimate since demand is not revealed. Cross-docking is a practice in logistics of unloading materials from an incoming semi-trailer truck or rail car and loading these materials in outbound trailers or rail cars with little or no storage in between. Data Aggregation: Advantages – Smoothes variability and produces a tractable problem. Disadvantages – Easy to overdo and get meaningless answers. E-Business is a collection of business models and processes motivated by Internet technology and focusing on improvement of extended enterprise performance. Game Theory/Nash Equilibrium is a solution concept of a game involving two or more players in which each player is assumed to know the equilibrium strategies of the other players and no player has anything to gain by changing only his or her own strategy. Basically, two dudes make up an order, and nothing is affected, in terms of the other dude, if the other guy changes his order. Lean Manufacturing – The optimal way of producing goods through the removal of waste and implementing flow, as opposed to batch and queue. Network planning is the way a firm structures and manages the physical supply chain – suppliers, plants, warehouses, etc (See 3-steps to network planning) Operational Level - Day-to-day decisions like scheduling/lead time quotes/routing/truck loading
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This note was uploaded on 07/08/2008 for the course IE 456 taught by Professor Ferrell during the Summer '08 term at Clemson.

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