Demand forecast updating bullwhip
Finally, synchronizing inventory management across the supply chain will help to reduce costs and increase profits.This requires coordination of all ordering decisions made by supply chain members and can be achieved through vendor managed inventory (VMI) where an upstream supplier manages the inventory of its downstream customer.Breaking order batches to quickly replenish stock can also help to control the bullwhip effect however the major concern with frequent orders is the high transportation cost associated with it.To manage this, composite orders can be made to maximize truckload deliveries through the economies of scale.
Improving operational efficiency to reduce lead times between each member of the supply chain can also help to control the bullwhip effect.
Running a product-oriented business requires the implementation of an efficient supply chain management system.
Ideally, an effective supply chain is able to achieve a competitive advantage by providing accurate information to suppliers so they can maintain an uninterrupted flow of products to customers.
Fourth, the establishment of the strategic partnership can build up mutual trust, share information to match the supply and demand of each stage of the supply chain well, thus reduce transaction costs. How to reduce the bullwhip effect in the supply chain of this new business is a critical question. sa=t&rct=j&q=&esrc=s&source=web&cd=10&cad=rja&ved=0CKg BEBYw CQ&url=
Bullwhip effect is a big topic in inventory management.
A collection of resources and commentary providing an introduction to supply chain management and related systems for students, practitioners, and anyone else interested in learning more about how to design, manufacture, transport, store, deliver, and manage products.