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Session 1 Notes

The documents discuss supply chain management topics including how supply chains are changing, the importance of data and forecasting, reducing volatility in supply chains, and strategies to handle the bullwhip effect. Specific points covered include how supply chains now include both development and fulfillment chains, predictive and prescriptive analytics, diversifying supply chains for resilience, and reducing carbon footprints.

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PALLAVI DASH
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38 views2 pages

Session 1 Notes

The documents discuss supply chain management topics including how supply chains are changing, the importance of data and forecasting, reducing volatility in supply chains, and strategies to handle the bullwhip effect. Specific points covered include how supply chains now include both development and fulfillment chains, predictive and prescriptive analytics, diversifying supply chains for resilience, and reducing carbon footprints.

Uploaded by

PALLAVI DASH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Session Notes 1

1. Supply chain footprint is dramatically changing.


2. Data is the differentiator

Key Developments in Supply Chain


1. Multiple Supply Chain = Enterprise Fulfilment Chain (Inventory, Response time) +
Development Chain (New product introduction)
2. Technology Trends - Descriptive (Past descriptions), Diagnostics (Why), Predictive
(what can we do) and Prescriptive (how can we do).

Session Notes 2
1. The technology was implemented before the pandemic.
2. Prediction was done before the disruption - leading to better preparation for tackling
the situation.
3. Diversifying supply chain management is a critical part of supply chain resilience.
4. Insurance is not the answer to supply chain resilience - because it does not protect
you from issues like brand recognition, customer loyalty.
a. Mattel vs Hasbro - When supply chain disruption took place, Mattel was
better off
5. Forecast is always wrong.
6. Lead time variability in the safety stock.
7. European companies have focused always on sustainability.
8. For US, sustainability is a function of oil price. They focus on reducing carbon
footprint and hence.

The Bullwhip Effect and its Impact on the Supply Chain

Example 1
1. Customer Product Demand is different from orders faced by manufacturers.
2. Cust Demand - Promotional activities by retailers (this is not in our control)
3. Variability in demand is difficult to forecast above and below the trend.

Example 2
1. Blue - Cust Demand, Red - Demand to Manufacturer.
2. How can we reduce volatility and what is its impact.

What drives a bullwhip effect


 Promotional Sales
 Volume and Transportation Discounts
 Inflated orders
In a simple supply chain, will we see any volatility in an ideal case?
D(t) =Customer Demand
q(t) = Retail orders from manufacturer
L = Lead time
Target Inventor Level - function of lead time(Y), service level(Y), average demand (N).
As you get more data, demand planning/forecasting data gives you better picture of average
demand.

B=

How much impact does volatility causes in the business

If there is an impact, what strategies do businesses adopt to handle bullwhip effect?

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