Then in a 3-4 page paper discussing this question. Be sure to use additional articles and resources to support your arguments.
Is VMI a valid method for reducing the BWE?
How does it compare to other inventory management methods for reducing the BWE?
What conclusions can you draw?
Use at least 3 different sources of information and annotate your sources of information appropriately on your references page and within the text as necessary. You will be assessed on how well you develop this case and demonstrate your understanding of VMI and its many benefits and challenges. Submit your assignment for grading by the end of this module.
For this case study please read the article below concerning vendor-managed inventory (VMI) and the Bull Whip Effect (BWE).
Ravichandran, N. (2008). Managing BullWhip Effect: Two Case Studies, Journal of Advances in Management Research, Vol. 5(II)
Purpose: The purpose of this paper is to present two examples based on real life experiences where the Bullwhip effect (BWE) in supply chain is considerably reduced. Both examples relate to the consumer durables industry in India.
Design/methodology/approach: The first example uses enterprise resource planning and vendor managed inventory as tools to reduce the BWE. The second example uses a modification of the classical inventory control policies to eliminate BWE.
Research limitations/implications: This paper could initiate research in an area which would help supply chain researchers and managers to understand why some companies are able to contain BWE and others are not.
Findings: Based on these two empirical case studies, the paper argues that managing BWE is a strategic initiative by organization and the best approach is a combination of several tactical initiatives.
Originality/value: This paper briefly summarizes the managerial approaches to tame BWE in two different contexts. The two examples have some similarities, differences and offer unique insights related to managing BWE.
Keywords: India, Supply chain management, Demand management, Consumer durables
For your case assignment, please research a different organization that has also gone through a major logistics quality initiative recently and write up a 4-5 page case paper reviewing that process.
Discuss why the company took on this initiative, what were the results, and how did this effort help improve the logistics/supply chain management in this company?
Be sure to provide the different steps in this change process and any issues or problems that occurred.
Be sure to use at least three references. The references that you find must be recent, within the last 6 years and they must be first hand references. You may not use references that are other students' research. AND You CANNOT be Home Depot.
Welcome to the second case study for this course. Please read the following article (along with the others in the required readings) and learn how Cessna went through a very substantial and well-documented quality initiative program to improve its logistics systems.
Cessna aims to drive SCM to its very core, Purchasing; Boston; Jun 6, 2002; James P Morgan.
When Michael R. Katzorke, vice president of supply management at Cessna Aircraft in Wichita, Kan., began working on the company's supply chain management system in 1998, Cessna was still a traditional aerospace firm. It had a functional orientation, was vertically integrated, had traditional processes and practices, and there was no provision for Total Quality Management or Six Sigma. To bring about the more fundamental and permanent changes they were seeking, Katzorke and his Cessna colleagues - both at the executive level and in supply management - have developed and deployed no fewer than twenty-one practices and tools aimed at: 1. driving the best possible supply-base rationalization decisions, 2. accelerating the supply-base rationalization process, 3. improving suppliers' performance, and 4. integrating key suppliers with Cessna's critical business, manufacturing, and design processes. Brief discussions of each of these steps are presented.
Managing inventory is essential for every retailer/supplier to meet consumer demand effectively. The challenge is not so much about maintaining stock for shortages as it is about effective inventory management. All parties including the suppliers, vendors to suppliers, and most importantly manufacturers have a role to play in inventory management. It is not just the vendor's responsibility to track the inventory but it is also the responsibility of the manufacturer to help maintain a system by which inventory is tracked, and supply is monitored on a regular basis.