This topic contains a solution. Click here to go to the answer

Author Question: What is the bullwhip effect, and how does it affect manufacturing?[br][br][b][color=black]Question ... (Read 64 times)

Mr.Thesaxman

  • Hero Member
  • *****
  • Posts: 514
What is the bullwhip effect, and how does it affect manufacturing?

Question 2

Many consumer packaged goods are distributed intensively. Why?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

meryzewe

  • Sr. Member
  • ****
  • Posts: 346
Answer to Question 1

One problem with basing production on supply chain partners' forecasts is the potential for the bullwhip effect to occur. Under this phenomenon, forecast errors are magnified and demand variability increases as orders move upstream from retailers to distributors to producers. The producers have to complete larger and more variable production batches to supply the often-changing downstream orders. This can lead to inefficient resource utilization as production capacity is not consistently engagedsometimes being overworked, other times being idled.

Answer to Question 2

First, inexpensive items often bought on impulse need to be widely available to stimulate sales. Customers aren't willing to drive very far for a candy bar, so if they're going to buy one, it has to be where they are, not somewhere else. Furthermore, since such things are inexpensive, companies need to sell them in large volume, meaning they need to be highly available. This is easy to do since these types of goods are usually smallmanufacturers can box up a whole bunch of them in a small space to transport them all over the place. This also works because of how simple these goods are. There is no need for a salesperson to be an expert able to discuss the item with a customer to help them purchase.




Mr.Thesaxman

  • Member
  • Posts: 514
Reply 2 on: Jun 28, 2018
Thanks for the timely response, appreciate it


ghepp

  • Member
  • Posts: 361
Reply 3 on: Yesterday
Gracias!

 

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

For a complete list of videos, visit our video library