¶ … ordering strategy is fairly simple, and this is why there were seldom backlogs. Basically, what you want to do is understand the baseline demand. In the real world, we would probably already have this data, but in the simulation we needed to figure that out. So most of the order backlogs occurred initially, and during promotion, when nobody was really certain of demand. Once it was established that demand was a fairly consistent 138 per week, it was much easier to align the orders, and keep inventory levels low.
The biggest issue with this situation is that the supplier was unable to deliver consistently. The supplier really did not seem to have the ability, even knowing what the demand was, to execute on that. My strategy as the wholesaler was simply to try to be an intermediary, and keep my inventory levels low. That is all I can do in this situation -- if the brewery cannot keep up with demand that is out of my control, but I can at least do my best to match up orders from my customers with orders from the brewery.
Future promotions will be easier to address. In this situation, we have now enough data to establish the mean demand for a week, and from there we are in a position to analyze how a promotion will affect that. With a mean and a standard deviation, we are able to more or less ensure a regular order. If a promotion is known to spike demand, in future we will be better equipped to deal with that. But part of the issue lies with the brewery as well. There was something of a problem getting our orders out to us, and only after the promotion ended was the brewery able to get back to somewhat stable deliveries to us. Yes, this situation cost us money in lost sales, but it cost the retails and the brewery that money as well. One would like to think that the brewery will remedy this by getting some more equipment and upgrading capacity. Such lost sales are a sign of success, even though they cause temporary...
(Reza, 2009) This information is building off of the findings from Uthayakumar. This is illustrating how the two tier system can help to streamline operations. However, as time goes by these ideas will become obsolete. The reason why is because they are focusing on particular aspect of supply chain management (i.e. during emergencies and backlogs). Where is it is failing, is through understanding how this strategy could be used when
Supply Chain Logistics Systems Of the many functional areas of an enterprise, supply chain logistics systems are among the most valuable to any business in differentiating their unique competitive advantages in turbulent, uncertain markets. From controlling the costs of production and service to delighting customers by having products in stock when they want to buy them, supply chain logistics systems often are the strongest differentiating element organizations in commodity-based industries have
Results from the study by Petersen, Ragatz and Monczka show that effective collaborative planning depends on information quality, and the trust level firms share. The authors purport: "Collaborative planning activities between supply chain partners are expected to lead to better performing supply chains" (Petersen, Ragatz & Monczka, Introduction section ¶ 1). In addition, numerous other researchers have also explored the perception relating to supplier alliances, that enhanced collaborative planning
CPM is critically important from a supply chain management standpoint in optimizing inventory positions by location throughout a distribution channel as well (Omar, 2009). All of these factors contribute to the automating of CPM and PERT through organizations who are heavily reliant on their supply chains to gain a competitive advantage. The optimization of inventory workflows using CPM and PERT contribute to that competitive advantage over time. PERT and
Video Review Inventory and Supply Chain Management VinLogic Video Review The supply chain simulation of an automobile supply chain intends to teach individuals about some of the challenges and decision points that one might find in a real-world application. The simulation includes provisions for production planning, demand planning, and logistical routing information. This allows the user to face decisions about these business functions. Additionally, there are also different methods by which inventory can
transitioning of the Defense Transportation System towards complementing best practices in supply chain management efficiently and securely is a daunting task. Organizations like DTS that aid the DOD in various processes requires consistent, effective, and continual management of things like inventory and delivery. That is why examining ways to improve the supply chain must be addressed. One way to address this issue is seeing how other companies or similar
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now