question 31 vas.fau.edu/courses/31948/quizzes/83912/take/questions/144 1.) Havin

Question

question 31

vas.fau.edu/courses/31948/quizzes/83912/take/questions/144 1.) Having inaccurate demand forecasts and not knowing demand (i.e. "demand signal processing"), which could be , a e partly due to long lead times, is one possible Rational cause of the Bullwhip Effect. List ONE other RATIONAL cause (besides those contributing to inaccurate demand forecasts) of the Builwhip Effect. (Make sure it is a RATIONAL cause, and not an IRRATIONAL cause!)(Note: Lack of communication is NOT a correct answer! Only list ONE cause - if multiple causes are listed, only the first one will be scored.) 2) What is ONE method, or practice, a firm could use to reduce (or "remedy") the bullwhip effect due to the cause you gave in part 1 of this question. (Note: Increasing communication is NOT a correct answer! Also, your answer must relate to the cause you me receive credit. ntion in part t to 3) Explain HOW the remedy (i.e. the method or practice that will minimize or reduce the bullwhip effect) you gave in the part 2 will reduce or minimize the bullwhip effece due to th rai. wil nrnvidad in nart 1 It will Honorlock is sharing your screen wth app hooc to de

Explanation / Answer

1) Another rational cause of the bullwhip effect is Order Batching.

In a supply chain, each supply chain affiliate places orders on an upstream member using some “goods in stock” refill mechanism. As requirement depletes the goods in stock, a company or a supply chain unit may not order continuously, but instead will accumulate goods in stock refill requirements from its supplier. The retailer doesn’t place an order with the upstream member as soon as he gets information about the depleting quantity of product. He follows his own style of order placing. He might order weekly or monthly, instead of ordering frequently as required to reduce the cost per order. The reasons for such ordering policies can be due to the supplier's capability of handling frequent orders, costs and time requirements of order processing or purchase order generation. As order cycles of disparate customers tend to randomly overlap, the result is a more erratic demand pattern than the actual demand seen by the customers , causing the Bullwhip Effect.

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