153 HW4 - IEOR 153 HW 4 Eddie Lo 19483002 1. Ch 5 #2-4 2)...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
IEOR 153 HW 4 Eddie Lo 19483002 1. Ch 5 #2-4 2) a. e-commerce and the internet alleviate the bullwhip effect because it allows suppliers to directly observe demand data as the number of visits to a certain product page or the purchases for a product will allow better demand forecasts and therefore lower lead times in getting the product to the buyer. b. Express delivery reduces lead times which alleviates the bullwhip effect since it reduces demand variability. c. Collaborative forecasts alleviate the bullwhip effect because all those who are participating in the forecast efforts will work together to come up with a more accurate portrayal of customer demand thereby reducing its variability. d. Everyday low pricing helps to alleviate the bullwhip effect because demand variability is reduced since there will not be “panic” demand spikes where suppliers and customers will stock up on a product when there happens to be a sale or promotion on the item. e. Vendor-managed inventory reduces the bullwhip effect because the supplier will not be using solely order centric information to make demand forecasts and instead all supply is controlled by the vendor so that the supplier can figure out how much to stock as inventory and how much to provide for consumers. f. Supply contracts reduce demand uncertainty via caps, minimum orders, etc. on supply orders, all alleviating the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

153 HW4 - IEOR 153 HW 4 Eddie Lo 19483002 1. Ch 5 #2-4 2)...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online