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Flexibility and redundancy: this is necessary in order to circumvent potential problems inthe supply chain or on the production, when a company is adaptable and has backupproviders it is less likely they will run into a shortage of supplies.Short replenishment and lead time: simply reducing this lead time will allow the companyto react more quickly to demand and give the company more latitude if the demandspikes at any point.Small order lot sizes: if the cost of ordering and shipping are normalized and reducedthen a more stable order and lot size can be expected; this again simply allows abusiness to have a better prediction of demand and avoid over orders that cannotEricka Hunter
3/6/2016Collection – MBA675T303 Operations & Logistics in the (...;30/31(Post is Read)necessarily be met.Rationing short supplies: this happens when customers or consumers over order whenthere is a shortage, instead of allowing the over order the company can simply go off ofprevious orders and reduce the number of potential orders being canceled or oversupplyof products.Everyday low pricing: big sales and changing pricing results in high demand and overordering of a product, if a company keeps pricing stable there will be less spikes indemand and consumers will not react simply to pricing when ordering the product.Cooperation and trustworthiness: providing positive customer service to resolve issuessimply allows the business to operate mrore smoothly and maintain a good reputationwhile issues are resolved.Thread:Q15: Minimize Bullwhip EffectPost:RE: Q15: Minimize Bullwhip EffectAuthor:Posted Date:February 8, 2016 10:51 PMStatus:Published(Post is Read)Hi Ericka,Thanks for your thorough post on bullwhip effect. Personally, I found this interesting, because asa consumer I always find myself purchasing a larger quantity of a product than what I actuallyneed.I believe that each of the ideas that you listed our vital. I can see where technology likely plays arole, especially when looking into Upstream/downstream Supply Chain Integration and Visibility.The quicker that individuals on different ends on the supply chain can interact, the fasterdecisions can be made regarding a specific product. Similarly, the sooner that the purchases of aproduct can be seen, the quicker that data can be analyzed and decisions can be made. I cansee where the technology behind the the bullwhip effect will likely continue to improve as wemove forward.JennaJenna BuettnerThread:Q15: Minimize Bullwhip EffectPost:RE: Q15: Minimize Bullwhip EffectAuthor:Posted Date:February 8, 2016 11:00 PMStatus:PublishedErickaThanks for providing examples and explaining the bullwhip effect. I have seenthis on both sides one as a consumer and the other as a supplier/manufacture.