ADM 3302 Lecture Notes - Lecture 6: Bullwhip

• School: University of Ottawa
• Department: Administration
• Course: ADM 3302
• Professor: amir khatie

Document Summary

> the following managerial actions increase total supply chain pro ts and moderate information distortion: -> aligning of goals and incentives, improving information visibility and accuracy, Improving operational performance, designing pricing strategies to stabilize orders, Aligning goals and objectives: improve coordination within the supply chain by aligning goals and incentives so that every participant works to maximize total supply chain pro ts: > altering sales force incentives from sell-in (to the retailer) to sell-through (by the retailer). > instead of using orders to forecast future demand, each stage in the supply chain should use end customer demand data. > di erent stages of the supply chain must forecast and plan jointly even if pos data is being shared. > when a single stage controls replenishment decisions for the entire chain, the problem of multiple forecasts is eliminated and coordination within the supply chain follows. > reduction in lead time helps dampen information distortion by reducing the underlying uncertainty in demand.