Counter-measures to the Bullwhip Effect

Counter-measures to the Bullwhip Effect Bullwhip Effect which is Supply Chain Demand Amplification caused due to distorted information moving from one end of a supply chain to the other causing tremendous inefficiencies. Companies can successfully counteract the bullwhip effect by thoroughly understanding its causes and effects. Several industry leaders are implementing innovative strategies that create new challenges such as integration of new information systems, definition of new organizational relationships, and implementation of new incentive and measurement systems. Various initiatives and remedies based on the underlying coordination mechanism, namely, information gathering and sharing, channel positioning, and operational efficiency can oppose the very effects. Through information sharing, demand information at a downstream site is transmitted upstream in a timely fashion. Channel positioning is the coordination of pricing, transportation, inventory planning, and ownership between the upstream and downstream sites in a supply chain. Operational efficiency refers to activities that improve performance, such as reduced costs and lead-time. Supply Chain strategies to counter measure Bullwhip Effect Following are few Supply Chain strategies employed to reduce or tame the Bullwhip effect and to improve business performance. Avoidance of Multiple Demand Forecast Updates Members of a supply chain conducts forecasting in association with its planning based demand input from their immediate downstream member in producing their own forecasts. Demand input from the immediate downstream member, results from that members forecasting, whose input is from its own downstream member. Solution to the recurring processing of consumption data in a supply chain is to make demand data at a downstream position available to the upstream site allowing both sites can update their forecasts with the same raw data in the current computerized scenario, manufacturers request sell-through data on withdrawn stocks from their resellers central repository warehouse. Although the data are not as absolute as point-of-sale data from the resellers stores, it offers considerably more information than was available when manufacturers didnt know what happened after shipping of their products. Electronic Data Interchange: Supply chain partners can use electronic data interchange (EDI) to distribute data. In the consumer industry, around 20 percent of orders placed by retailers of consumer products were transmitted via EDI in early 1990s.Now its grown to around 80%. The EDI basically facilitates information transmission and sharing among chain members. In the consumer products industry, this practice is known as Vendor-Managed Inventory (VMI) or a continuous replenishment program (CRP). Several companies such as PG, Campbell Soup, MM/Mars, Apple, Nestle, Quaker Oats, and Scott Paper uses CRP many of their customers. PG employs VMI in its diaper supply chain, starting with its important supplier, 3M, and their customers- Wal-mart. Apple Computer has a consumer direct program, i.e., it sells directly to consumers without involving the reseller and distribution channel. An advantage of the program is that it allows Apple to spot the demand patterns for all its products. Dell Computers is another company which sells its products directly to customers. Just-In-Time Replenishment: Long resupply lead times can aggravate the bullwhip effect. Improvements in operational efficiency can help reduce the highly variable demand due to multiple forecast updates. Hence, just-in-time replenishment is an effective way to mitigate the effect. Break Bulk Orders Order batching contributes to the bullwhip effect therefore companies need to devise strategies that lead to smaller batches or more frequent resupply. Electronic data interchange [EDI] can reduce the cost of the paperwork in generating an order. PG has introduced standardized ordering terms across all business units to simplify the process and dramatically cut the number of invoices. General Electric is electronically coordinating buyers and suppliers throughout the company. Nabisco perform computer-assisted ordering, paperless, thereby customers order more frequently. Assortments of different products: Another reason for large order batches is the cost of transportation. To tackle this cost, some manufacturers encourage their distributors to order assortments of different products. Hence a truckload may contain different products from the same manufacturer as an alternative of a full load of the same product. Thus for each product, the order frequency is much higher, the frequency of deliveries to the distributors remains unaffected, and the transportation effectiveness is preserved. PG has given discounts to distributors who are willing to order mixed-SKU (stock-keeping unit) lots of its products. Composite distribution for fresh and chilled food uses the mixed-SKU idea to make resupply more regular. Since fresh produce need to be stored at different temperatures, trucks to transport them need to have a variety of temperatures. Third-party logistics: The use of third-party logistics companies also helps make small lot replenishments economical. They give room for economies of scale that was not feasible in a single supplier-customer relationship. By consolidating loads from several suppliers located close by, a company can realize full truckload economies even without having the batches coming from the same supplier. PG coordinates regular delivery arrangements with its customers. Hence, it distributes the replenishments to all the several retailers evenly over a week. Stabilize Price Variations Reduction of both the frequency and the level of wholesale price discounting can control bullwhip effect caused by forward buying and diversions. The manufacturer can reduce the incentives for retail forward buying by establishing a uniform wholesale pricing policy. Everyday Low Price (EDLP): Retailers and distributors can aggressively negotiate with their suppliers to give them everyday low cost (EDLC). PG, Kraft, and Pillsbury have moved to an everyday low price (EDLP) or value pricing strategy. PG reported its highest profit margins in twenty-one years and showed increases in market share in early 1990s. Activity-based costing (ABC) systems facilitate companies to recognize the unnecessary costs of forward buying and diversions. When companies run provincial promotions, some retailers buy in bulk in the area where these promotions are held, then divert the products to other regions for utilization. ABC systems provide explicit accounting of the storage, individual handling, costs of inventory, transportation, and so on that previously were hidden and often outweigh the profit of promotions. Eliminate Gaming in Shortage The sharing of capacity and inventory information helps to lessen customers anxiety and, consequently, lessen their need to employ in gaming. Times when a supplier faces a shortage, instead of assigning products based on orders, it can assign in proportion to past sales records. Customers have no incentive to overstate their orders. General Motors has long used this method of allotment in cases of short supply. Sharing capacity information is insufficient when there is a genuine shortage. Few manufacturers work with consumers to place orders well in advance of the sales time. Thus adjust production capability or scheduling with improved knowledge of product demand. Counter measure to Generous return policies Generous return policies that manufacturers offer retailers heighten gaming. Without a penalty, retailers will continue to overstate their needs and cancel orders. Few computer manufacturers are starting to enforce more stern cancellation policies. Eliminate incentives for customers and distributors On eliminating these incentives, it can prevent demand accumulation and order staging. Minimizing incentivized promotions will cause the customers to delay orders and there by smoother ordering patterns. We need to understand the product demands at each stage of the supply chain. Basically increase the collaboration through shared demand information as discussed above. This shall ensure there are no information queues leading to information flow delays. A Methodological approach to solving the bullwhip problem The principal decision lies in whether to study the bullwhip problem in discrete or continuous time system. In discrete time [using Laplace transform and differential delay], the various system states [demand rates, inventory and WIP levels] and replenishment orders are placed at the equally spaced moments of time. In between these moments of time, no information about the system is known. In continuous time [using z transform] the systems states are monitored at all the moments of time and the rate of order is continuously adjusted. Neither of the representations of time is incorrect. Just that one representation of time may be more suitable for a given situation than the other. Consider for example, in a grocery supply chain, supermarkets total up demand that has occurred during the day, a replenishment order is prepared and the delivery is dispatched from the distribution centre overnight. This scenario is especially suitable for a discrete time analysis. On the other hand, a petrochemical plant might be able to constantly adjust its production of different grades of product to mirror the current demand rates for each grade. This type of scenario is more agreeable and suitable to a continuous analysis. Finally we can conclude that the bullwhip effect results from rational decision making by members within the supply chain. Companies can effectively counteract the consequence by thoroughly considering its underlying causes. Thus the companies can either let the bullwhip effect paralyze them or discover a way to conquer it and play it to their advantage.

Cause and Effects of Protestant Reformation

Major Causes and Effects of the Protestant Reformation There were several causes of the Protestant Reformation that effected society, politics, and religion in Europe during the 16th century. In my opinion, the immediate cause that started the reformation was Martin Luther’s act of posting the 95 Theses on the door of the Wittenberg Cathedral in the Roman Empire. Luther was unhappy with the Catholic Church, and posted the Theses due to the sale of indulgences that was going on to raise money for the renovation of St.Peter’s cathedral from people who wished that their souls go from purgatory to heaven. Luther believed that an indulgence was justified for a person’s wrongdoing. By selling indulgences, the Church was giving forgiveness to people who were not sorry for the sins they had committed. Luther posted the Theses in order to debate the sale of indulgences because he was worried for the people’s souls. Although Luther’s original intentions were to reform the Church of its corruption and greed, it resulted in a split between Protestants and Catholics. The effect that this had on religion was huge.People began to question the oppression of the Church and see it for the manipulative organization which it was, wanting complete control of the population. In turn, people challenged the Church’s authority, and it eventually lead to people freeing themselves from the constraints of the Church as a whole. This made each man individually answerable himself to God. While Luther’s Theses was the immediate cause of the Reformation there were several other causes also. Another major cause was the invention of the printing press and the translation of the Bible to English.John Wycliff translated the Bible to English so that those who could not read Latin could interpret for themselves what the Bible had said. He believed that the Church was entirely too wealthy, and that they were taking advantage of those that had to rely on the Church for Bible translation and guidance. I believe that the printing press allowed for more common people to be able to purchase books. Before the printing press Monks had to recopy books themselves by hand. It also allowed for mass production which put the Bible and other literature in the hands of a much larger audience.The effects on society were that common people were getting more educated on their own, and didn’t need the Church for guidance to run their lives. It also encouraged more people to learn how to write because there was a wider market for their words and opinions. Religion became more accessible to the common people. This allowed for people to come up with their own opinions on the translation of the Bible. The people began to challenge the Church’s authority because they no longer needed a Priest to translate to them. This would end up causing the Catholic Church to lose power.The next major cause of the Protestant Reformation was the creatio n of Lutheranism and the Lutheran Church. The Lutheran Church changed the entire culture in Europe. It caused society as a whole to live more wholesome lives by cutting down on sinful acts and criminal offenses. The Church began to draw the line on what was acceptable and what was not. People began to live more holy lives. Since religion had so much to do with the government and politics at the time, it affected how governments had to be run because they could no longer pay off the Church to get their way.This caused a major political effect on the Catholic Church. Power struggles began to influence how rulers would deal with the Church. Luther’s opposition to the financial practices of the Catholic Church fell on welcome ears even though any religion from the religion that was practiced by the majority of citizens was considered very dangerous. Many local authorities realized that by adopting Lutheranism and ridding themselves of Catholicism that they could seize Church prop erty and avoid payment of Church taxes.When Charles V signed the Peace of Augsburg in 1555, it allowed local princes to determine the religion of their area and declare their political and financial independence from the Catholic Church. Although there were many causes and effects of the Protestant Reformation, I believe that these are the most influential causes and effects of society, politics, and religion in Europe during the 16th century. Works Cited Duiker, William J. , Spielvogel, Jackson J. â€Å"World History Seventh Edition Volume II Since 1500† Wadsworth, 2013. Print.

My First Day in the University Essay

My first day at college is an important event of my life. To me it is an unforgettable day. During my school days. I had a glimpse of college life from my elder brothers and sisters. I was most curiously awaiting the day when I would start my college life. I thought that the college life would offer me a free life; here restrictions would be few and threat of teachers would be little. At last the longed for day came in. I was admitted to the Government College of my city. I entered the college premises with new hopes and aspirations. I was glad to see that the college presented a new sight. It was quite different from what I had seen in and around our school. I came across many unknown faces. I had some very strange experiences on the first day of my college life. I was baffled to see students playing indoor and outdoor games and enjoying radio programmes during class-hours. There is no restriction of uniform. I observed that the students are free in their movements. They can do things according to their choice. I found all the newly admitted students in high spirits. They were all happy to make friends. I moved round the college. I was very much delighted to see the grand library of the college where I could find books on very subject. The college laboratory excited my interest on the very first day and I got eager to perform experiments there. I noted down the time-table of my class from the notice board. I attended the classes. I found that the method of teaching in the college is different from that in the school. Each subject is taught by a specialized teacher. Questions are not asked in the classes. Professors do not rebuke the students if they fail to learn their lessons. They simply tell the students to be conscious of their responsibilities. The students find here a homely atmosphere which they lack in the school. For this, they feel easy and comfortable here. I felt a new rhythm of life and returned home with a mixed sense of duty and liberty.

Analysis Of Edgar Allen Poe And A Poison Tree By William...

Are you safe? Have you done anything? Think again, even the little things. Sometimes you may never know. Hopefully you dont end up like these two ill-fated men that were suddenly murdered. In the texts â€Å"The Cask Of Amantiatio† by Edgar Allen Poe and â€Å"A Poison Tree† by William Blake, They plotted their murders carefully and made sure nobody would find out it was them. Edgar Allen Poe and William Blake show that revenge can come as a shock because sometimes appearance hides reality. There are two literary devices in these passages that strongly represent the texts, they are conflict and setting because they are actively expressed throughout both the texts a various amount of times. In the texts Poe and Blake use conflict and setting. They†¦show more content†¦In the poem A Poison Tree by WIlliam Blake the story shows setting throughout the poem by plotting his murder is a certain place.Till it bore an apple bright. And my foe beheld it shine, And he kn ew that it was mine. And into my garden stole,When the night had veild the pole In the morning glad I see; My foe outstretched beneath the tree.† (lines 10-16 William Blake) This plots the murder because he appeared to be friends with his buddy, but when he came over he stole an apple in his garden, which he didnt know was poisoned and when the murderer woke up, he saw him dead beneath a tree, in The Cask Of Amontillado by Edgar Allen Poe he plots a murder too and he vividly describes the setting of it. This shows that appearance can be different than reality, due to this he appeared friendly, but his murder was plotted by poisoning an apple that appeared fine but it wasnt. In the text The Cask Of Amontillado by Edgar Allan Poe he shows setting vividly, along with that Poe shows that sometimes appearance is different than reality. â€Å"As I threw the bones aside, I slowly uncovered the building stone and mortar, with these materials I began vigorously building up the niche .† (lines 170-173 Poe) This shows that the setting was important because he plotted the mortar and building stones so he could kill him and he made it seem likeShow MoreRelatedFundamentals of Hrm263904 Words   |  1056 PagesHRM 28 PART 2 Chapter 3 Chapter 4 THE LEGAL AND ETHICAL CONTEXT OF HRM Equal Employment Opportunity 56 Employee Rights and Discipline 84 PART 3 Chapter 5 Chapter 6 Chapter 7 STAFFING THE ORGANIZATION Human Resource Planning and Job Analysis 110 Recruiting 132 Foundations of Selection 154 PART 4 Chapter 8 Chapter 9 TRAINING AND DEVELOPMENT Socializing, Orienting, and Developing Employees 182 Managing Careers 208 PART 5 Chapter 10 Chapter 11 Chapter 12 Chapter 13 MAINTAINING