Opma 317 final Study guides, Class notes & Summaries

During the SCM Exercise Graph Commonalities - ️️Fluctuations, amplification, and a time lag between the retailer to the factory Beer Game Average - ️️Everyone averaged around the same even though some came from different backgrounds yet the players control the game, you can't blame customer demand What caused people to act the way they did during the beer game? - ️️1) Lack of communication/cooperation - guessing of the customer demand-->arbitrary ordering RESULT: BULLWHIP...

bullwhip effect - ️️a distribution channel phenomenon in which forecasts yield supply chain inefficiencies. It refers to increasing swings in inventory in response to shifts in customer demand as you move further up the supply chain vendor managed inventory - ️️A means of optimizing Supply Chain performance in which the manufacturer is responsible for maintaining the distributor's inventory levels. The manufacturer has access to the distributor's inventory data and is responsible fo...

Purchase vs Product Order Flow - correct answer Upstream vs. Downstream What happens to fluctuations and why? - correct answer Fluctuations are amplified due to a time lag Beer Game: What caused people to act the way they did - correct answer Lack of communication/cooperation and long lead times Bullwhip Effect - correct answer Information going back through the supply chain is distorted and then amplified. Members of the supply chain overreact to changes in demand. How does ...

Bullwhip effect - ️️Information (orders) going back through the supply chain are distorted and amplified How to improve the supply chain - ️️Communication and cooperation, and shorten lead times (allows faster response) On-shoring - ️️Local production near demand; reduces costs, length of lead times, and variability of lead times; easier to identify local needs; lead to the perception of keeping jobs local Supply Chain - ️️A network of facilities that procure raw materia...