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Amplification

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Submitted By nirajvaria
Words 982
Pages 4
Niraj Varia
MS 792
Dr. Polak
Assignment 5
1. This case is aiming to analyze relevant root causes and associated counter-measures of the amplification phenomenon in service supply chains in order to improve the quality and flexibility of service processes because of that their study has a broader perspective. Based on their study, Akkermans and Vos confirmed the occurrence of upstream amplification of workload in the service supply chain, workload being a more appropriate measure for amplification effects in service supply chains than inventory levels. According to their case results, there weren’t able to find all root causes of “bullwhip effect” in this industry: batch ordering and shortage-gaming. The major root cause that could cause the bullwhip effect is Demand signaling and price fluctuations with emerging workload and quality as per Akkerman and Vos.
Workload and Quality: It also goes hand in hand that when there is extra workload, quality suffers and vice versa. This causes the birth of rework which creates extra workload asking for more time, value and money creating accumulation or backlog causing more delays.
Order batching: Batch ordering can not apply in the service supply chains where the intangible nature of services is because there is no way to hold inventories and also the delivery of services is essentially make-to-customer order. Because of the nature of services, order batching is not relevant as a root cause of amplification effects in service operations.
Shortage gaming: Shortage gaming may apply in the service supply chains. Based on the findings of study, customers requesting a second line certainly do not ask for an extra line to make sure they will at least get one installed. Although there are no clear examples of shortage gaming in service operations, but customers may apply rationing practices when buying certain services like

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