of inventory management also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demandforecasting.
(2) The goal o
TO-BE: Create a better everyday life for the many peoples
(VISION)
- Take better control of its supply chain
- Enhance performance in terms of delivery service and costs
AS-IS: SCM problems (IMPLEMENTATION)
a) Overestimated demand to ensure delivery
b) Forecasting has been done on a regional level
c) The supply chai
Factors Contributing to the Bullwhip Effect
DemandForecasting
Lead Time
Batch Ordering
Price Fluctuations
Inflated Orders
Methods for Coping with the Bullwhip Effect
Reducing uncertainty
- Centralizing information
Reducing variability
- EDLP
Lead-time reduction
- cross-docking, EDI
Strategic partnerships
- VMI
Cross-docking
A practice in logistics of unloa
of products 30 TV using new market extension or price discount. Milk companies, however, if they can't sell their milk in time, the milk can't be sold anymore. This is because the company will get in trouble with the products freshness which is related with their success in the market. Thus exact demanding forecasting and distributing in time is very important.
1.2 History
In 1975 Seoul Milk
company tried to make loading and unloading just in time.For this, they use RFID system.
By this technology, the company could improve productivity and customer satisfaction by faster speed of shipping.
The trucks contain RFID tags.
And the system checks the cargo and the tracks the truck. And the system can identify that the cargo arrives on time.
RFID system can give better security.