The Management of Demand and Supply
13 Pages3617 Words85 Views
Added on 2019-09-30
The Management of Demand and Supply
Added on 2019-09-30
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Supply Chain Management
TABLE OF CONTENTSPART A.........................................................................................3-5PART B.........................................................................................5-6PART C.........................................................................................6-9PART D.........................................................................................9-10PART E.........................................................................................10-11BIBLIOGRAPHY............................................................................11-122
PART A1) The management of demand and supply is integrated by the supply chain management. As perthe supply chain management council professionals all activities of management and planning is encompassed and the activities involved in procurement and sourcing, logistics and conversion.The supply chain management four element are 1) Demand Management: It emphasis on the company and its partners for fulfilling the needs of customers rather than the production process. In the chain of supply the lead company makes aware of customer needs to the partners which encourage them to maximize the component or quality of supply and the product value is increased which are finished.2) Communication: Effective communication improves the productivity and efficiency of entire supply chain management which enables to share the members the same demand and information which are operational.3)Integration:As per the case study on the retailer Wal-Mart which is conducted by the San Francisco University, integration processes of supply chain helps each members to reduce the costs of inventory which is a key to successful chain management.4) Collaboration: In the supply chain collaboration strengthen the relationship between members which improve the teamwork and help the member to increase their business[ CITATION Lan17 \l 1033 ].If there is a failure in the demand management then the company cannot increase the competitiveness of the supply chain which is whole and opportunities of business for all members cannot be increased.If there is no effective communication then the members is enable to respond to the new businessopportunities rapidly and not able to get new products to market quickly.If there is no integration then the company is unable to develop single information network and members are unable to share and access supply and demand data accurately.If there is no collaboration then the company is unable to take joint new product programs of development with partners which contributes knowledge which are specialist of components and materials.2) The problems which are common in the management of supply chain are time and supply of 3
decisions order, demand for the supply, lack of communication and disorganization. The problem which is common is known as bullwhip effect and can also be termed as whiplash effect.This can be explained as the occurrence which is detected by the chain of supply where orders which is sent to the supplier and manufacturer create large variance then the sales to the customer which are on end. In the lower parts of the supply chain these irregular orders develop to be more distinct and higher up in the supply chain. The supply chain process smoothness can be interrupted by this variance as each link in the chain of supply will over or underestimate the demand of product result in fluctuations which are exaggerated[ CITATION Ada12 \l 1033 ].The following things to be done on order to reduced the Bullwhip effect and they are improve the flow of information along the supply chain, reduce delays in the supply chain, pay closer attention to point of sales purchase made by customers, reduce your order sizes in the retail industry this is referred to the economic order quantity and maintaining price consistency[ CITATION Owe17 \l 1033 ].For example: Actual demand for a pen from the purchaser is 10 units the retailer order 13 units from the distributor an extra three units are ordered in order to make sure that they do not run outof floor stock.The supplier orders 20 units from the manufacturer allowing them to buy in bulk so they have enough stock to guarantee timely shipment of goods to the retailer. The manufacturer then receives the order and then orders from their supplier in bulk ordering 40 unitsto ensure economy of scale in production to meet demand. Now 40 units have been produced fora demand of only 10 units, the retailer will have to increase demand by dropping prices or finding more customers by marketing and advertising.3) The five differences between modern and traditional supply change management are1) Modern Supply chain management (e-SCM) which is based on internet places are less relativein value on partnership which is long-term and alliances which are strategic as compared to supply chain which are traditional which reduces the expenditures which are technological associated with foregoing new relationship in the supply chain management which is modern.2) e-SCM helps in increasing partnership opportunities as compare to traditional SCM.3) The saving opportunities of cost are more effective in e-SCM.4) Leadership of Autocratic nature will be cost effective, responsive which are high but 4
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