(LOG501): SUPPLY CHAIN THEORY Word Task Assignment: Ordering Kentucky Hooch Brew - Essay Example

The shipment from KHBC is received on Wednesdays and deliveries to our retailers are made on Thursday or Friday. This ensures that the customers are stocked for the weekend. It has come to our attention that KHBC is going to begin a new promotion and advertisement campaign in the next month. This campaign is going to put the Kentucky Swamp Brew in the minds of every college student in the Midwest. It is therefore expected to raise the demand of the brew amongst our customers on the hit of the advertisement and campaign given the habits of the college students.

In order to fully satisfy the customers under the increasing demand for the product as a result of the advertisement and campaign and to avoid the bull whip effect an effective strategy had to be put in place the organization adopted a just in time ordering strategy as the suitable strategy to use in the ordering and distribution of the brew to the customers this was viewed to be the most appropriate method as it took care of the bull whip effect which would be a major problem both to the organization and to the KHBC.

Just-in –time strategy ensures that we do not have more of the brew than we actually require since the storage of unused inventory is a waste of resources and, thus the hidden cost incurred are exposed. This method in general focused on having the right quantity of inventory required at that exact time. The retailers were to receive the goods / brew immediately they placed the orders with the organization; the organization ensured that their warehouse was well equipped with the brew due for collection or deliveries on Thursday to the local customers.

This ensured that the retailers only ordered for what was enough for them as the fear of previous delays by the KHBC was no longer a matter of concern. Adequate research was carried out to determine the total amounts of consumption of the product within