ADM 3302 Lecture Notes - Lecture 5: Supply Chain

• School: University of Ottawa
• Department: Administration
• Course: ADM 3302
• Professor: amir khatie

Document Summary

Lack of sc coordination and the bullwhip e ect: > supply chain coordination improves if all stages of the chain take actions that are aligned and increase total supply chain surplus. > supply chain coordination requires each stage of the supply chain to share information and take into account the impact its actions have on other stages. > lack of coordination results when: objectives of di erent stages con ict. > one outcome of the lack of supply chain coordination is the bullwhip e ect, in which uctuations in orders increase as they move up the supply chain from retailers to suppliers. > the bullwhip e ect distorts demand information within the supply chain, with each stage having a di erent estimate of what demand looks like. Information moving between stages is delayed or distorted. The e ect on performance of lack of coordination: