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 92 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
YES! Correct, THANKS for helping me on my review


xoxo123

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

For a complete list of videos, visit our video library