Production Management. Sharing demand information.
This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!
A retailer following a (Q,r) policy and facing Poisson demands, places order of size Q with a supplier that does not have economies of scale in ordering/producing.
1. Describe the form of the supplier's optimal policy in the absence of demand information sharing.
2. Describe the form of the supplier's optimal policy if the retailer shares demands information with the supplier.
3.Under what conditions will the retailer be willing to share information?© BrainMass Inc. brainmass.com June 7, 2023, 2:27 pm ad1c9bdddf
1) In the absence of demand information sharing , the form of suppliers optimal policy will be to have an estimate of the demand to be distributed in a poisson fashion with mean of Q units. The standard deviation of demand will also be Q. We can see the bull whip effect happening in this case. For example if the mean demand is 10units/week , the retailer will place an order of, say, 15 units/week ( the rest 5 units is the safety stock retailer would want to keep to prevent against a stockout). Thus the supplier ...
Free BrainMass Quizzes
The Fundamental Classified Balance Sheet. What to know to make it easy.
The quiz will test your knowledge on basic social media concepts.
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking