FINAL

Question 1

What caused people to act the way they did in the eBeer?

Answer 1

1. Lack of Communication
2. Long Lead Time

Question 2

Bullwhip Effect

Answer 2

Information going back through the supply chain is distorted and then amplified

Question 3

Bullwhip Effect Formula

Answer 3

Variance in Orders / Variance in Demand

Question 4

How does a long lead time affect decision making?

Answer 4

Panic - when inventory does not instantly arrive and solve your
growing backlog, you panic and order even more

Question 5

What are the business implications of the supply chain structure?

Answer 5

1. Stockouts
2. Excess Inventory at times
3. Layoffs / Re-hiring costs
4. OT
5. Expediting

Question 6

How can we improve actual consumer demand?

Answer 6

• IT to not lump demand by lot sizes

Question 7

How can we encourage communication/cooperation?

Answer 7

• Incentives to share info
• Vendor Managed Inventory

Question 8

How can we improve forecasting?

Answer 8

• collaborative panning forecasting and replenishment (CPFR)
• eg. Barbie

Question 9

CPFR - Canadian Tire

Answer 9

Now provides a 26 week planned order stream for each SKU

This helps suppliers see far in advance
when demand for an item will “pop”

Question 10

How can we shorten ADMIN lead times?

Answer 10

IT

Question 11

How can we shorten TRANSPORTATION lead times?

Answer 11

suppliers close by

Question 11

How can we shorten PHYSICAL MANUFACTURING lead times?

Answer 11

• JIT
• small batches = faster production completion

Question 12

Next-Shoring

Answer 12

local production NEXT TO demand

Question 13

Systems Thinking

Answer 13

before you do anything, analyze how it will
impact your supply chain

Question 14

What if you cannot change the supply chain
structure?

Answer 14

Adapt – recognize delays and predict ordering impacts

Question 15

Examples of smoothing your supply chain

Answer 15

• EVERYDAY LOW PRICES instead of crazy sales that create waves of demand