19 - Beer Game Debrief and Bullwhip Effect
pdf
keyboard_arrow_up
School
University of Washington *
*We aren’t endorsed by this school
Course
301
Subject
Industrial Engineering
Date
Feb 20, 2024
Type
Pages
4
Uploaded by BaronHippopotamusPerson1484
Bullwhip Effect Outline: 1.
Beer Game Review 2.
The Bullwhip Effect Phenomenon 3.
Possible Causes and Solutions of Bullwhip Effect 1. Beer Game Review What’s the demand you (each player) see during the game? Did your team have a strategy in place? Did it work? Why or why not?
2. How Realistic Is This? – The Bullwhip Effect Bullwhip effect is the variation amplification effect from downstream to upstream along the supply chain. Examples
Pampers diaper
Campbell soup
Motorola, Intel, Cisco
Barilla
Any observations during the pandemic? Consequences? Counter-measures?
Caterpillar (WSJ 2010): -
Even if demand is flat, it would need to boost production by 10%-15%, suppliers would have to increase output by 30%-40% -
If it boosts production by 15%, many suppliers would need to more than double their shipment -
Caterpillar is well aware of this bullwhip effect
Last fall, CEO talked about this to investors
Two executives went around to 500 suppliers to explain a bullwhip was likely coming
A supplier: “they were still dropping orders, but here they were asking about increases…”
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
3. Possible Causes and Solutions of Bullwhip Effect and Remedies
Irrational behavior?
Rational behaviors Cause of Bullwhip
Information Sharing
Channel Alignment
Operational Efficiency
--
Understanding system dynamics
--
Vendor-managed --
Lead-time reduction
--
Use point-of-sale data
inventory (VMI)
--
Electronic data interchange
--
Discount for
--
Echelon-based
(EDI)
information sharing
inventory control
--
Internet
--
Consumer direct
--
Computer-assisted ordering
(CAO)
--
EDI
--
Discount for truck-
--
Reduction in fixed cost
--
Internet ordering
load assortment
of ordering by EDI or
--
Delivery appointments
electronic commerce
--
Consolidation
--
CAO
--
Logistics outsourcing
--
Continuous replenishment
--
Everday low price
program (CRP)
(EDLP)
--
Everyday low cost (EDLC)
--
Activity-based costing
--
Sharing sales, capacity
--
Allocation based
and inventory data
on past sales
Order Batching
Price Fluctuations
Demand Forecast Update
Shortage Gaming