Assignment #1 - due March 7, 2015

From the Demand Shaping with Supply in Mind please answer the following questions:

1. What are the three actions Supply Chain Managers can take to ensure that supply and demand are aligned when building the demand plan?

A. Aligning of goals and incentives across functions and evaluated based on their effect on profitability and not total costs: Pricing- manufactures can use buy-back, revenue sharing; altering sales force; incentive from sell-in to sell-through (ie. to the end customer (sell through) and not to the retailer (sell in).

B. Improving information accuracy: (i) sharing point of sales data; (ii) implementation and designing single stage control of replenishment (eliminates multiple forecasts).

C. Improving Operation performance - reducing lead time, reducing inventory, rationing base on past sales and sharing information to limit Gaming; eliminate promotions and charge an Every Day Low Price - removes forward buying by retailers and results in orders that match customer demand.

2. How can a Supply Chain Manager actively be engaged with sales and marketing in shaping demand?

two scenarios:

If there is an excess of materials and components, under-utilized plants, or a surplus of finished good inventories, supply chain can work with sales and marketing to develop programs aimed at correcting these excess supply situations which might result in significant inventory obsolescence and write-offs.

If there are shortages of any type of supply, then marketing and sales should be convinced into changing demand plans to not aggressively sell products impacted by the shortages. Otherwise supply chain managers will have to execute emergency procedures to meet the excess demands leading to increased costs and reduced profits (ie. paying higher prices for procured materials and