Bullwhip EffectBullwhip Effect (some of the articles used the word meaning horse whip effect) is a phenomenon in the supply chain when there are downstream consumers demand a certain amount and order from their suppliers. When the supplier receives the purchase order, the supplier of raw materials to the water again as the number of items with no thot corresponds to the real needs of the end consumer of water. Which most often ordered more than the actual need for some reason, such as:-Do not know the real needs of the end consumer of water. To forecast the needs of the customer, which is forecasting mistakes.-Always look at the world in the sense that they must be selling well at all or much of a production order. With the attitude that the rest of the better tolerance margin is missing. -To avoid customer complaints when the product is not enough to deliver. So the customer has satisfied, or is there a High Level Service beforehand compensate stocking more.-Although actually, the requirement is not so much, but it was more than the demand, because the minimum order quantity is at least.-Order rather than actual demand, because it wants to have a discount on the purchase order.-Etc.
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