1.What is the greatest potential-and challenge-for effective supply and demand m
ID: 462733 • Letter: 1
Question
1.What is the greatest potential-and challenge-for effective supply and demand management?
2.Answer the following questions concerning negotiation techniques (tactics):
Discuss how “keeping the initiative” is a negotiation technique. (10 points)
Discuss how “never give anything away” is used as a negotiation technique. (10 points)
Discuss how “separating people from the problem” is a negotiation technique. (10 points) (Points : 30)
3.(TCOs 1 and 2) Answer the following questions concerning lowering the total cost of ownership.
Discuss how a “quality cost” can affect the cost of ownership. (10 Points)
Discuss how “downtime cost” can affect the total cost of ownership. (10 Points)
Discuss how “conversion cost” can affect the total cost of ownership. (10 Points
Explanation / Answer
1) The most effective way to increase the effectiveness of any supply chain is by increasing the demand. The effective demand planning does not happen overnight. It takes time, effort, and work. Organizations will be successful by balancing the both demand and the supply. Failing to meet the demands and expectations of the market and the customers, can be a "lost opportunity" to the organizations and this helps the competitors increase their market presence.
Integrating the supply chain with the demands of the customer is the demand management. In the other words, it is the supply chain process which balances the customer requirements with the capabilities of the supply chain.
With this thought, let's see what is the biggest potential for the effective supply and demand management. The biggest potential is being proactive to the market needs and the anticipated demand, and reactive to the unanticipated demand. The biggest challenge is to anticipate what the market needs.
2) keeping the initiative
Keeping the initiative means, putting forward the first step before seeking the negotiation. Before any negotiation begins, there will be a speculation of how should you start the negotiation, or who starts the negotiation. It is always better to take the initiative before the negotiation. This helps to buy time and have minimal upset.
Keeping the initiative is one of the negotiation techniques. It is used before starting any conversation. It is a kind of a strategy a person uses to buy time from the person with whom he wants to negotiate. This is mainly applicable to those who wants to pitch in any conversation before somebody from whom he needs a favor or from whom he needs some business. One who would like to start the conversation should always prepare himself about what he wants to convey. That should be crisp and prompt and should arose interest in the person with whom you want to negotiate.
Tip: always prepare yourself before you initiate a discussion.
Never give anything - Never give anything without getting something in return is one of the negotiating techniques. Say for example you are doing a sales pitch. Don't give discounts or concessions before the other person asks you. Giving the concessions before they ask you actually spoils the deal.
Give concessions if you are sure they could buy if you give one. So, always remember, never give anything without you get something in return to what you give. If you do, you are just conceding and not negotiating.
The most valuable negotiation in this case will be closing the deal. If you thing by concession, the deal shall be closed, then go forward and close the deal.
Separating People from the problem - Effective negotiations helps to separate people from the problems and provides an amicable solutions to solve the problems. It is always better in not bringing the relationships between the negotiation process. It is important to focus on the problem rather than taking the sides. By separating the people from the problem, one could actually act in a very neutral way.
Separating people from the problem is always very important negotiation skill. It ensures that the negotiation happens in a very composed environment.
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