Having inaccurate demand forecasts and not knowing demand (i.e. \"demand signal
ID: 379155 • Letter: H
Question
Having inaccurate demand forecasts and not knowing demand (i.e. "demand signal processing"). which could be partly due to long lead times, is one possible cause of the Bullwhip Effect. List ONE other RATIONAL cause (besides those contributing to inaccurate demand forecasts) of the Builwhip Effect. (Make sure it is a RATIONAL cause, and not an IRRATIONAL causel) (Note Lack of communication is NOT correct answert Only list ONE cause - if multiple causes are listed, only the first one will be scored.) 2) What is ONE method, or practice, a firm could use to reduce (or "remedy") the bullwhip effect due to the sause you gave in part 1 of this question, (Note: Increasing communication is NOT a correct answer! Also, your answer must relate to the cause you mention in part 1 t receive credit bullwhip effect) you pave HOW the remedy (i.e. the method or practice Explain HOW the remedy (i.e. the method or practice that will minimize or reduce the bullwhip effect) you gav in the part 2 will reduce or minimize the bult ip effect due to the cause you provided in part 1. It will be helpful to describe the two characteristics of the bullwhip to explain your answers. PhotoGridExplanation / Answer
Having the close collaboration between the member of the supply chain can be seen as the most feasible solution to the problems encountered resulting from the bullwhip effect. With the collaboration among the members of supply chain mainly means transforming suboptimal solutions of individual links into a comprehensive solution through sharing customer and operational information”. Improvement in the processes and the processes involved in the supply chain can really help in cutting done the delivery lead time and it will control the pipeline inventory. The delivery lead time is directly affected by the reorder point and the desired level of the inventory. By controlling the lead time to its minimum, the total amount of inventory can be controlled effectively.
Apart from this having long term relationship with the suppliers also help in controlling the lead time. When there is a strong and long relationship between the supplier and the organization, the supplier tends to understand the pattern in the supply requirements and thus they start preparing to get ready for the supplies to deliver with the least time.
Sharing the real time information with the suppliers will also help in eliminating the lead time. Every tier in the supply chain should be having the clear information related to the demand of the customers. In fact, the business should also be having the detailed information about its pipeline inventory. This can be achieved with the help of technological advanced methods such as point-of-sales product scanning and vendor-managed inventory,
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