Proc 5850
1). Discuss how each of the following helps to alleviate bullwhip effect?
a). E-Commerce and Internet: E-Commerce and Internet have come a long way since their inception. Customers have the option of, making the orders online at any point in time. There are specific shop timings to affect the sales of the product but this does not apply after the inception of E-Commerce. Added to this; most of the internet applications today are so effective that they can actually be integrated with the existing databases to provide sales and customer demand information at different stages of the supply chain. This advancement in technology definitely helps in alleviating the bullwhip effect since the upstream stages of the supply chain can plan and have an idea of the changes in customer demand for a product. All the stages in the supply chain can make effective and efficient decisions, to involve in similar inventory polices and planning activities so that the whole supply chain can be optimized (Global Optimization) rather than any sequence (i.e. Sequential Optimization). Thus E-Commerce and Internet definitely adds value in increasing the vital information to control inventory, production, lead-times etc.
b). Express Delivery: Express delivery options basically help in reducing the lead-times associated in each of the stages of the supply chain. As a matter of fact lead-time is one of the major causes to add to the variability in the supply chain, as a result enhancing the bullwhip effect across the upstream stages. Due to the availability of information and the express delivery options that are being offered today; for example, by FedEx, UPS etc, the suppliers are able to ship the components at a faster rate to the manufacturers and similarly the warehouses to the retailers. Thus Express Delivery options are able to resolve the bullwhip effect to a great extent, which is providing an opportunity for the players in the supply chain to plan well and effectively. Also, as
a). E-Commerce and Internet: E-Commerce and Internet have come a long way since their inception. Customers have the option of, making the orders online at any point in time. There are specific shop timings to affect the sales of the product but this does not apply after the inception of E-Commerce. Added to this; most of the internet applications today are so effective that they can actually be integrated with the existing databases to provide sales and customer demand information at different stages of the supply chain. This advancement in technology definitely helps in alleviating the bullwhip effect since the upstream stages of the supply chain can plan and have an idea of the changes in customer demand for a product. All the stages in the supply chain can make effective and efficient decisions, to involve in similar inventory polices and planning activities so that the whole supply chain can be optimized (Global Optimization) rather than any sequence (i.e. Sequential Optimization). Thus E-Commerce and Internet definitely adds value in increasing the vital information to control inventory, production, lead-times etc.
b). Express Delivery: Express delivery options basically help in reducing the lead-times associated in each of the stages of the supply chain. As a matter of fact lead-time is one of the major causes to add to the variability in the supply chain, as a result enhancing the bullwhip effect across the upstream stages. Due to the availability of information and the express delivery options that are being offered today; for example, by FedEx, UPS etc, the suppliers are able to ship the components at a faster rate to the manufacturers and similarly the warehouses to the retailers. Thus Express Delivery options are able to resolve the bullwhip effect to a great extent, which is providing an opportunity for the players in the supply chain to plan well and effectively. Also, as