...Supply Chain Management: Challenges, Remedies and the Impact of change - Overview By Adawari Josiah Jumbo Student No.: 15522057 Submitted To Laureate Online Education & University of Liverpool – Online Masters Degree In Partial fulfillment for the award of Master of Science (M.Sc.) Degree in Operations and Supply Chain Management Instructor: Professor Anshuman Khare 2010. ACKNOWLEDGEMENT I am delighted to say thanks my Instructor Professor Anshuman Khare for your professional support and supervision all through this module including this project work for your encouragement is commendable. The learning acquired through interaction with my course mate has been tremendous, I therefore say thanks to my entire class mate. I also appreciate all authors whose works aided me in this project. I am sincerely indebted to all of you. To God, I say thanks for your kindness and support for this programme. Adawari Josiah Jumbo ABSTRACT This research was carried out to find out the challenges and the economic and operational impact of change on supply chain, including the options available to improve the challenges and create increased performance on the chain. To drive home the study we focused on PHRC Limited in Nigeria. We also undertake a comprehensive review of...
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...Purpose of report The economic impact of Starbucks on the UK economy June 2013 The objective of this report is to investigate the economic contribution of Starbucks to the UK economy. This contribution is quantified in terms of impacts from: The operation of Starbucks in the UK; The supply chain effects created by Starbucks purchases of inputs from elsewhere in the UK economy. The consumer expenditure of Starbucks’ staff and those employed directly in its supply chain spending their wage income. The report also discusses aspects of Starbucks UK operations that are likely to play a more diffuse role in supporting the performance of the overall economy and the localities in which Starbucks has a presence. The report comprises six chapters as follows: Chapter 2 focuses on the economic contribution to value added and the number of people employed by Starbucks operations in the UK. Chapter 3 explores the impacts on the economy, again in terms of value added and employment that Starbucks purchases from its UK supply chain creates and its staffs’ spending their wage income. Chapter 4 aggregates these operational, supply chain and wage consumption effects to provide an overall quantification of the impact on the UK economy from Starbucks activities. Chapter 5 discusses the wider, ‘catalytic’ contributions that Starbucks makes to the UK economy. First, the report provides an overview of Starbucks operations in the UK and an introduction to economic impact analysis...
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...Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 2 (2): 131-141 © Scholarlink Research Institute Journals, 2011 (ISSN: 2141-7024) jetems.scholarlinkresearch.org Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 2(2):131-141(ISSN:2141-7024) Information Distortion in Supply Chain: A Simulation Approach to Quantifying the Bullwhip Effect 1 1 Oyatoye, E.O and 2Fabson, T.V.O Department of Business Administration University of Lagos, Akoka-Yaba, Lagos, Nigeria 2 Telsy Value Consult, Onike Road, Iwaya, Lagos, Nigeria Corresponding Author: Oyatoye, E.O ____________________________________________________________ ______________________________ Abstract Supply chain exists due to the fact that it is difficult for any company to provide all that is required from raw materials to final products and at the same time get the products to the end users. Successful supply chain management requires a change from managing individual functions to integrating activities into key supply chain process; hence, accurate information is of essence. One of the key factors that can adversely affect effective and efficient supply chain process is information distortion. Demand forecasting and ordering policies have been recognized as two key causes of bullwhip effect in supply chain management. This study explored the simulation approach in quantifying the effect of bullwhip in supply chain, using various forecasting methods. ____________________________________________________________ ...
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...International Economics Paper Hercillia C. Henderson ECO/372 October 21, 2015 Professor Watson Ragin The Role of the President and Congress in Stimulating and Contracting the Economy Both the President of the United States and the United States’ Congress are capable of enacting policies that may have the effect of either stimulating or contracting the economy. The President is able to stimulate the economy in a variety of ways. One is to propose a Congressional budget that includes increases in spending for the purpose of creating a stimulus, or proposing tax cuts that likewise are intended to have a stimulus effect. The President may also issue executive orders in certain areas that have the effect of creating a stimulus or contracting the economy. These might include appointing like-minded people to the Federal Reserve Board, adjusting certain tax rates by means of changes in revenue collection policy, adjustments to trade policy, and the like. Congress possesses similar powers in that Congress may appropriate spending for purposes of a imposing a stimulus package, adjusting rates of taxation for the purpose of generating economic growth, adjusting trade policy, such as lowering tariffs, for a similar purpose, and creating public works programs. Budgets and legislation that are proposed by the President must ultimately be approved by Congress, although the executive branch of the federal...
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...REVIEW OF SUPPLY CHAIN MANAGEMENT CONCEPTS AND THE BULLWHIP EFFECT H.M. Lai1 1Faculty of Engineering, Universiti Putra Malaysia, 43400 Serdang, Selangor, Malaysia. ahiu_mun@hotmail.com Keywords: Supply Chain Management, Bullwhip Effect, Inventory. Abstract. In recent years, the application of supply chain management in organization has become very popular. Business organizations today increasingly use the vital role of supply chain management to compete. This paper presents the basic concepts and literature review of supply chain management. The practice of supply chain management is guided by some basic underlying concepts that have not changed much over the centuries. This paper also discusses the common problem in supply chain management known as the bullwhip effect. 1. Introduction At present, the way the business is done has undergone radical transformation due to ever increasing expectations of consumers. The realization of importance of collaboration and integration among the partners has led to the idea of supply chain management. Organizations have realized the essentialness of an effective and efficient management of supply chain for present and future survival. Hence, the importance of supply chain management has grown over a period of time and plenty of planning models are now practiced by organizations across the globe. In adopting supply chain management, organizations must carry out a consistent set of management practices. 2. The Concept of Supply Chain Management...
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...Building a resilient supply chain Introduction Global supply chains and transport networks create the core of the global economy, fuelling trade, growth and consumption. Due to the never-ending push of management boards to improve efficiency and increase profit, supply chains are becoming more and more complex. Getting leaner, just-in-time inventory, outsourcing and other trends have introduced many business benefits, however we must not forget about the other side of the problem; new kinds of supply chain risk. Except from the internal company’s trends, other macro factors are influencing the complexity of a supply chain. Forces such as globalization, e/m-commerce and global connectivity are fostering the process of higher complexity within the chains and are amplifying the impact of problems & risks, which may arise. The trends and are not only influencing the company side though. Customer expectations and PLCs continue to develop and change in reference to external factors. A constant stream of products (high quality, low cost and environmentally friendly) is expected by the modern times buyers. The internet, social media platforms and the „shrinkage of the distances“ between people, lets the public quickly learn about any weak spots of company; sometimes even before the information reaches the employers. Not only internal trends have contributed to the fragility of the supply chains. External challenges during the last decade such as the fuel crisis, mouth...
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...Robert Allison W12020458 Business with International Management Global Supply Chain Management MO255 Alireza Shokri Word Count: Task 1 – 834 Task 2 – 989 Task 3 – 828 Summary – 500 Overall – 3000 Task 1 In recent years the media has a lot to talk about with regards to the British supermarket industry. The main issue raised has been targeting the “horse meat scandal” which has been a major talking point amongst the British public since the media began making it such a relevant topic. This issue is mainly down to the supply chain link between the raw materials supplier and the retailer. An example of this is frozen foods company Findus having to recall a large amount of its lasagne meals due to their supplier Comigel raised concern that its products didn’t “conform to specification” (Bowling, 2013). Tests were performed on the products supplied by Comigel and out of the 18 products tested they found 11 to be containing between 60 and 100 percent horse meat traces (Bowling, 2013). Another good example of the horse meat scandal in the media is with Tesco supermarkets. Tesco’s everyday value frozen burgers which used meat supplied by Silvercrest Foods (Hegarty, 2013) were tested to analyze the percentage of meat in each burger. Out of the 27 beef burgers that were trialed 10 tested positive for horse DNA and 23 positive for pig DNA (Hegarty, 2013). The highest level of horse DNA found in any of Tesco’s value burgers was a massive 29.1% and since the conclusion...
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...without problems of business contact because of technological innovations that have contributed to globalization. In the book The World is Flat, Thomas Friedman argues in support of the Dell Theory of Conflict Prevention. On the other hand, William Duiker is not sure about the trend that globalization sets. He argues that globalization may be caused by a simultaneous trend towards fragmentation. In the Dell Theory of Conflict, Friedman states that the world has an economic interdependence that has a possibility of war. However, he says that when two countries or states engage in business together, they are less likely to go into war when they are equal parts of the same global supply chain. He clearly states that the two countries are unlikely to go to war because they have invested heavily in the business. Therefore, according to Friedman, the success of the business between the two countries involved depends on the supply chain. William Duiker in his book, Contemporary World History links social, cultural, economic and political history of the world to issues of globalization. His argument about globalization as an offset of a simultaneous trend towards fragmentation is wrong. Globalization as seen in the current has brought the world together rather than fragment it. Globalization has brought together different ideologies cultures and other different aspects that exist among societies, in the world. It has connected the world more...
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...Enterprise Resource Planning (ERP) and Supply Chain Management (SCM). As an organization grows so must its Information Systems. Growth should see an organization transcend from the use of Spreadsheets for its data collection, analysis and storage to probably Oracle and then to ERP. ERP integrates information from both the internal and external business processes without which the various processes will be islands on their own. The report looks at the efficacy of supply chain management in organizations and how ERP complements SCM. It dabbles into the retailing industry as a whole considering giants like TESCO and Wal-mart, how the proliferation of SCM solutions such as RFID and VMI have been of help to them and also gives an insight into the phenomenon of Bullwhip, how it affects the supply chain and where the solution to the scourge lies. Introduction The retailing industry has come a long way in India, from the era of barter trading to the local, unorganized retailing and to the organized retailing; it is evident that the industry is under a significant revolution. With the recent opening of India’s retailing industry to foreign direct investments, major world players like TESCO and Wal-mart are gathering momentum to step into the scene in India; the success of this corporations in U.S. and U.K. respectively can be linked to effectiveness and the efficiency with which their business have been run. Enterprise Resource Planning and Supply Chain Management have been key to their success...
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...The effect of strategy on the use of supply chain management tools – exploratory survey in the Hungarian automotive industry István Jenei1, Krisztina Demeter2, Andrea Gelei3 Budapest University of Economic Sciences and Public Administration, Hungary Abstract Supply chain management (SCM) usually goes beyond company boarders. Cooperating parties are required, who decide to work together. The way how this cooperation evolves depends on the strategies and practices of the parties. In this paper we examine the connection between strategies and SCM practices. Our objective is to analyze how strategy determine the SCM tools used among supply chain parties. The analysis is based on 17 interviews within two supply chains from the Hungarian automotive industry, where supply chains are defined through the car makers (Audi, Suzuki) as focal companies. Our results support the proposition that the connection between strategy and supply chain tools (configurations and practices) is very strong. It is underlined with not only the comparison of the two supply chains but can also be detected in the strategic change at one of the focal companies which resulted in supply chain changes, as well. Besides the main objective a detailed view is provided about the past, present and future of the Hungarian automotive industry. Keywords: Supply chain, supply chain management, strategy, automotive industry, Hungary Introduction content of strategy is required to operate successful ...
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...What is the Bullwhip Effect? The bullwhip effect is the magnification of demand fluctuations, not the magnification of demand. The bullwhip effect is evident in a supply chain when demand increases and decreases. The effect is that these increases and decreases are exaggerated up the supply chain. The essence of the bullwhip effect is that orders to suppliers tend to have larger variance than sales to the buyer. The more chains in the supply chain the more complex this issue becomes. This distortion of demand is amplified the farther demand is passed up the supply chain. Proctor & Gamble coined the term “bullwhip effect” by studying the demand fluctuations for Pampers (disposable diapers). This is a classic example of a product with very little consumer demand fluctuation. P&G observed that distributor orders to the factory varied far more than the preceding retail demand. P & G orders to their material suppliers fluctuated even more. Babies use diapers at a very predictable rate, and retail sales resemble this fact. Information is readily available concerning the number of babies in all stages of diaper wearing. Even so P&G observed that this product with uniform demand created a wave of changes up the supply chain due to very minor changes in demand. EXPLAINATION OF THE BULLWHIP EFFECT The graphical representations above show the bullwhip effect between two supply chain partners. It can be seen that the Distributor orders to the factory experience demand fluctuate far...
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...International Business Research Project: Butterfly effect of Japan´s disaster on global production Professor: Dr. Corrine Young Prepared by: Team 6 Alonzo, Marie Francoise Arango, Luisa Fernanda Darbinyan, Mkrtich Parparcén, Luis Felipe Salas, Ana Karina Solano, Pablo May 28th, 2011 INDEX Content Butterfly Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain b. Economical impact of the Japanese Disaster 2- Impact on global production in important industries a. Automobile Industry i. Toyota b. Electronics Industry 3- Collateral impacts of the disaster a. Increase in electricity costs b. Explanation of why the yen is so strong. i. Supply Chain ii. Cheap Investment iii. GDP Impact iv. Export Economy v. Currency vi. Monetary Policy 4- Innovation in supply Chain and the Disaster in Japan a. The Top 10 Supply Chain Innovations from 1880-1990 (1) b. Supply Chain Innovation c. Supply Chain Innovation - Environment d. Long-Term Disarray after Japan Disaster Conclusions Bibliography Butterfly Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain Japan is an island nation located at...
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...International Business Research Project: Butterfly effect of Japan´s disaster on global production Professor: XXXXXXX Prepared by: Team X May 28th, 2011 INDEX Content Butterfly Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain b. Economical impact of the Japanese Disaster 2- Impact on global production in important industries a. Automobile Industry i. Toyota b. Electronics Industry 3- Collateral impacts of the disaster a. Increase in electricity costs b. Explanation of why the yen is so strong. i. Supply Chain ii. Cheap Investment iii. GDP Impact iv. Export Economy v. Currency vi. Monetary Policy 4- Innovation in supply Chain and the Disaster in Japan a. The Top 10 Supply Chain Innovations from 1880-1990 (1) b. Supply Chain Innovation c. Supply Chain Innovation - Environment d. Long-Term Disarray after Japan Disaster Conclusions Bibliography Butterfly Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain Japan is an island nation located at the East of Asia, in the Pacific Ocean. Its currency of legal course is the YEN (¥). Japan has the tenth largest populations in the...
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...The Effects of Terminal Costs on Supply Chains with LTL Shipping Observed causes, effects and mathematical analysis Ryan Conrad Portland State University Civil and Environmental Engineering P.O. Box 751 Portland, OR 97207-0751 Phone: 503-725-4282 Fax: 503-725-5950 The effects of costs associated with terminal points of truck freight tours, called terminal costs, are analyzed. An overview of current U.S. government and public policies, business practices and transportation infrastructure issues affecting Less Than Truckload (LTL) shipping networks is presented. A qualitative model of supply chain interactions is constructed followed by a mathematical analysis of specific areas of interest where costs are sensitive to policy or operational changes. CE 553: Freight Transport and Logistics Dr. Miguel A. Figliozzi December 10th, 2008 1. Introduction Traffic congestion and delay are becoming increasingly significant problems for the U.S. freight trucking industry. While freight transportation has continued to grow steadily, the capital spending and construction of freeways and major highways has remained mostly stagnant since the mid-1970s when the interstate freeway system reached completion. Much attention has thus been paid to methods of most efficiently using the road space available, particularly in dense urban areas, with lane tolling, freeway ramp metering and other measures being utilized. Major freight...
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...Bullwhip Effect Analysis A significant phenomenon in supply chain management (SCM), first observed by Forrester (1961), shows that the orders variability along the upstream direction is amplified in supply chain networks. Subsequently this observation was termed as bullwhip effect by Lee, Padmanabhan, and Whang (1997a, 1997b). Such extreme distortion for the actual end customer demand to upstream have been proved to significantly increase costs and lower performance (Chen, L. and Lee, H. L. 2012; Wang, X. and Disney, S. M. 2016). In this regard, many research has been achieved to investigate the bullwhip effects from the perspective of supply chain and operation research. In construction industry, Taylor, J. and Bjornsson, H. (1999) firstly studied demand distortion of construction material and discovered that cumulative orders from contractors amplified along the upstream to the supply house due to the inability to share information. However, unfortunately, very limited research has been done to focus on the bullwhip effect in construction industry. Current study regarding the reduction of bullwhip effect can be briefly divided into three main aspects. One stream is to focus on information sharing mechanism to decrease bullwhip effect as well as increase supply chain stability (Ouyang, Y. 2007; Agrawal, S. et al., 2009; Dai, H. et al., 2016, Dominguez, R. et al., 2014). In fact, technologies, aimed at enhancing information sharing and communication mechanism, has been broadly...
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