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Supply chain theory - Essay Example

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This product is manufactured by our Kentucky Hooch Brewing Company, a company that enjoys a long working relationship with EBBD. In…
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Supply chain theory
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Download file to see previous pages In order to be well placed and to take advantage of the increase in sales, EBBD will adjust its order rate.
The bullwhip effect is the vulnerability created from mutilated data streaming all over the inventory network. It is the increment in the variability of request as it moves from the Customer to the Manufacturer. In order to reduce the bullwhip effect, EBBD will make smaller order additions to minimize time between requests. This will make processing and delivery of order to the clients to be more effective and timely. The piece by piece increase will also reduce the cost of handling that would be incurred by making excessive order. The order strategy is meant to ensure that at every given time, there is enough stock to supply to retailers throughout the week. The order quantity is a slight incremen0t of the retailers demand. Having stock will ensure no order goes un-served and reduces the backlog of order from retailers. Fernie & Sparks (2009) argue that maintaining equilibrium within the stock of a chains supply needs a deep consideration of all the stock holders ranging from the customers as well as the suppliers.
The sales within EBBD in the first five weeks had minimum change and this can be as a result of much attention given to the campaign other than the sales. However, the sales started increasing the mid weeks. Seven weeks after the kick off of the campaign, the sales started to rise. The trend was high affected by the fact that at this point the campaigns had been extended to all the target areas. Arikan (2008) articulates that marketing campaigns rarely have immediate results but once the objectives have been achieved, the results are worthwhile.
As part of our strategy to create equilibrium with our inventory levels, the customer order backlog was reduced by increasing EBBD ordering pattern. After the few weeks of the campaign, we expected more ...Download file to see next pagesRead More
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