BUS 336 Study Guide - Final Guide: Electronic Data Interchange

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 336
• Professor: Michael Johnson

Document Summary

Bullwhip effect: a trend of larger and larger swings in inventory in response to changes in demand, as one looks at firms further back in the supply chain for a product. Causes: inefficiencies in the supply chain and incurs extra costs to those in the chain. Also known as: whiplash or whipsaw effect. When one updates their forecast using smoothing techniques, they include their safety stock as well, but other managers do not know of this in the order. Peroidic ordering: ordering all at one time, ex: monthly ordering: uses material requirement planning (mrp) and distribution. Requirement planning (drp: called mrp and drp jitters. Push ordering: sudden surges in the ordering period. Promotions can cause consumers to stock up on items that do not reflect their immediate needs. Dumbest marketing ploy as it harms the company later on. If company only has 50% stock of the demands, they would fill.