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Bullwhip/whiplash effect is the condition experienced in the supply chain characterized by larger significant inconsistency of the orders sent to the producers and suppliers compared to sales to the consumers (Koch, 2008, p 119). This condition usually results to uneven flow of…
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Download file to see previous pages Those products are sold under different brand names across the globe. The supply chain managers at P&G discovered a prevalent bullwhip for its several brands especially pampers diapers.
Initiation of “vendor-managed inventory system” for the supply chain of diaper to ensure harmonization of the supply chain (Arai & Kimura, 2005, P.67). This approach resulted to in market share of P&G and a reduction of the Wall-Marts operating cost.
P&G should utilize a policy of replenishing the stock of the suppliers more frequently by adopting “just-in-time” system in order to smooth flow of products and avoid building up excess stock at one point while risking running out of stock at other times (Koch, 2008. P.127).
P&G should ensure the prices of the products are stable at all times irrespective of quantity demanded by suppliers in order to ensure that suppliers order the exact products they demand rather than order large quantities to enjoy huge discounts (Bettley, David, & Tarek, 2005, p.173).
P&G should allocate products to the suppliers according to previous demands rather instead of basing relying on clients’ demands that could otherwise be based on speculation of price changes or shortage in supply.
Cisco is a manufacturer of electronic products. Initially, the company relied on Xilinx Company based at San Jose, California which supplied it with electronic components. However, Xilinx relied on intermediary distributors such as Avnet. At some points, this association resulted to significant variance involving the quantity of the electronic components demanded by Cisco company and the amount produced and distributed by Xilinx through it distributors. These variations forced Cisco make a bargain with Xilinx in order to streamline the supply chain system and harmonize the products demanded with the product supplied. This requirement resulted to change in strategies used by Xilinx and as a result ...Download file to see next pagesRead More
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