Mod 6 Flashcards
The values of information include:
- reduce variability
- improve forecasts
- enables coordination of systems and strategies
- improves customer service
- facilitates lead time reductions
- enables firms to react more quickly to changes
Order variability is amplified:
up the supply chain
Upstream echelons face:
higher variability
Causes of Bullwhip effect include:
- Promotional sales
- volume and transportation discounts (batching)
- inflated orders
- demand forecasting
- long cycle lead times
Consequences of bullwhip effect include:
- increase transportation costs
- reduced service level
- increased safety stock
- inefficient allocation of resources
- increased production costs
How to cope with bullwhip effect:
- reduce uncertainty (sharing of information)
- reduce variability (eliminate promotions)
- reduce lead times (EDI, cross docking)
- strategic partnerships (VMI, data sharing)
collaborative forecasting addresses:
- pricing
-promotion
-new products
Information for coordination of systems include:
- production status and costs
- transportation availability
-inventory information
-capacity information
-demand information
benefits of lead-time reduction include:
- orders are filled quickly
- reduced bullwhip effect
- accurate forecasts
- reduced inventory levels
how can you reduce lead-time?
- process analysis
-EDI
- transportation choices
CPFR stands for:
collaborative planning, forecasting and replenishment
CPFR include:
- strategy and planning
- demand and supply management
- execution
- analysis
How does Nabisco cope w/ bullwhip effect?
-Integrated information systems
-coordinated planning
how to achieve coordination in practice:
-Quantify the bullwhip effect
-Get top management commitment for coordination
-Devote resources to coordination
-Focus on communication with other stages
-Try to achieve coordination in the entire supply chain network
-Use technology to improve connectivity in the supply chain
-Share the benefits of coordination equitably
Supply chain upstream is:
extent to which retailers and consumers can monitor origin of products
supply chain transparency captures:
the extend of which information about:
-companies
-suppliers
-sourcing locations
is readily available to end users and other companies in the supply chain
demand/downstream transparency
extent to which suppliers and manufacturers can monitor demand
benefits for demand (downstream) SC transparency:
-sharing POS data
-VMI programs
- limit bullwhip effect
- better SC coordination
- decreases costs of demand uncertainty
benefits of supply/upstream transparency:
- risk management
- quality assurance
- authenticity concerns
- environmental issues
-labor issues at origin
forms of technologies companies are using:
RFID
Bar Coding
enhanced product labels
genetic testing
sand-gram micro chip
reasons to not track SC transparency:
- financial barriers
- cant see beyond first tier suppliers
- increased level of risk w/ data sharing
ways to build supply/upstream SC transparency
- identify and prioritize risks
- visualize risks
- use transparency levers to close info gaps
- manage and monitor
blockchain is:
Distributed database of records, or public ledger of all transactions or digital
Executed and shared among participating parties.
Verified by consensus of a majority of the participants in the system.
characteristics of blockchain include:
-Permission-less (accessible to anyone)
-Transparent (visible to everyone)
-Immutable (permanent)
-Secure (Extremely difficult to tamper with)
blockchain for supply chains include:
- integrity of goods
- trust
-tracking
-track quantity
- record shipping documents
-provide downstream participant w/ details
-simplify regulatory and auditing processes
- monitor shared info
benefits of blockchain:
-Transparency
-Security
-Speed of information
-Innovation
-Information Flow
disadvantages of blockchain:
-confidentiality
- scalability
- energy consumption
- law
