SCM 300 DAVILLA EXAM 2 ASU LATEST UPDATE

SCM 300 DAVILLA EXAM 2 ASU LATEST UPDATE Bullwhip affect + causes - the effect of unplanned repetitive change in demand felt across the supply chain. From distributor to supplier - can cause: negative effects on cost of labor and materials, lowers customer service, leaves over supply of stock Shortage Gaming - - when demand exceeds supply manufacturers - customers order extra to compensate for perceived need - they cancel extra need leaving extra supply and no demand ( need to view supply history to avoid this) Rationing - - rationing a certain supply, causes Shortage gaming Why go global - - Increase revenues globally - Decrease costs globally CPFR - collaborating, planning, forecasting, rescheduling bullwhip effect - The bullwhip effect is a supply chain phenomenon where fairly stable demand results in a proliferation in the amount of inventory that is carried as one travels upstream in the supply chain. retail store needs to worry about customer inventory distributor - has to worry about customer and retial store and so on... amplification of inventory from one supply chain to the next Line waiting stakeholders - Customers SCM 300 DAVILLA EXAM 2 ASU LATEST UPDATE 2 | P a g e Corporate - owners, managers, employees Line waiting stakeholder costs - time and money (your time, your employees time) Electronic Manufacturing Services - - One manufacturer that makes a shit ton of electronics - you don't have to buy most of the parts yourself - You don't have to build the infrastructure Advs: -Fast start -strong start -low cost -flexible volume amounts Cons: Purchasing Agreements - Balking - customer wants what you have but they get scared away by the line Reneging - get in line, then decided the line is too long or get frustrated, get out of line Psychological Variables of lines - - free stuff