Resume of discused materi (english) FINAL

Integrating new information system 2 defining new

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challenges: 1. integrating new information system, 2. defining new organizational relationship, and 3. implementing new incentive and measurement systems. We have identified four major causes of the bullwhip effect : Demand forecast updating : Order batching, Price fluctuation and Rationing and shortage gaming Based in this signal, the upstream manager readjusts his or her demand forecast and, in turn, the orders placed with the suppliers of the upstream operation. We contend that demand signal processing is a major contributor to the bullwhip effect. The result is that the fluctuation in the order quantities over time can be much greater than those in the demand data. There are many common reasons for an inventory system based cycles. Often the supplier cannot handle frequent order processing because the time and cost of processing an order can be substantial. When a company faces periodic ordering by its customers, the bullwhip effect results. If all customers’ order cycles were spread out evenly throughout the week, the bullwhip effect would be minimal. Forward buying result from price fluctuations in the marketplace. When the product’s price returns to normal, the customer stops buying until it has depleted its inventory As a result, the customers buying pattern does not reflect its consumption pattern, and the variation of the buying quantities is much bigger than the variation of the consumption rate – the bullwhip effect. When product demand exceeds supply, a manufacturer often rations its product to customers. Later, when demand cools, orders will suddenly disappear and cancellation pour in. The effect of “gaming” is that customers’ orders give the suppliers little information on the product’s real demand, a particularly vexing problem for manufacturers in a products early stages. Understanding the causes of the bullwhip effect can help managers find strategies to mitigate. We categorize the various initiatives and other possible remedies based on the underlying coordination mechanism, namely, information sharing, channel alignment, and operational efficiency. Bullwhip effect are created when supply chain members process the demand input from their immediate downstream member in producing their own forecasts. The differences in forecasting methods and buying practices can still lead to unnecessary fluctuations in the order data placed with the upstream site. In a more radical approach, the upstream site could control resupply from upstream to downstream. anxiety and, consequently, lessen their need to engage in gaming. 9
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Finally, the generous return policies that manufacturer offer retailers aggravate gaming. Without a penalty, retailers will continue to exaggerate their needs and cancel orders. Not surprisingly, some computer manufacturers are beginning to enforce more stringent cancellation policies. 10
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Christopher Reinemann
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