Action World is a gift company that distributes different gifts for all occasions. A customer placed an order for Gift A, but one of the components, item B is out-of-stock in the warehouse. Action World immediately placed an order for Item B. It takes 1 day for the supplier to confirm the order and another 2 days for the supplier to produce and deliver the item B. After that, it takes 1 day to prepare Gift A and another day to deliver to its customer. What is the order lead time for item B? And what is the order lead time for Gift A? Order lead time for item B: 3 days Order lead time for Gift A : 4 days
Give three reasons why Action World holds inventory.
Reasons for Action World to hold inventory was enables production to carry on continuously so that Action World could continue to produce his goods without having worry if his goods would be sold, as there is a place to store his goods. Secondly, to stock up items to meet future demands and also provide buffer between supply and demand. Thrid, to ensure regular supply of their goods and ensure items that are seasonal would be available throughout the year in order for them to meet the demands.
Identify the independent demand item and dependent demand item in this question.
Gift A is an independent demand. Item B is an dependent demand item.
In anticipation of the holiday season, Action World orders large quantities of gift items from its suppliers. Describe how this might result in a bullwhip effect in the supply chain.
When Action World orders large quantities of gift items from its suppliers, it incurrs insufficient capacity in their inventory. They would have incurred capital cost, storage space cost, inventory service cost and inventory risk cost that causes Action World to minimize there profits as their goods would be still selling at the same price. Action World will take longer cycle times and cost increase as a overall. The gift items they order will be outdated in no time, and cause fluation in other words poor forecast accuarcy
Give two reasons why the bullwhip effect leads to high costs in supply chains.
Bullwhip effect incurrs costs like, excessive or insufficient capacity, overall cost increase, poor forecast accuarcy as items might be outdated in no time causes fluation. These causes overall cost to increase and lost of sales and profits.
Recently, Action World created an online system called “Retail Link” that allows its retailers to share sales data with Action World and its suppliers. Action World and its suppliers could logon and see the actual sales data; this helps them approximate the demand for their products. State two ways this strategy might help to reduce the “bullwhip effect”.
In this way, it reduces uncertainty and lead time. Action World doesnt needs to be afraid to over stock and causes insufficient capicity, this reduces uncertainty of stocks. and suppliers can check online what action world needs and reconfirm this reduces lead time.
my unfinished section this is only section a there's so much question to do and there's only 45mins learn to give and take
at the end of de test whole class was whinning and complaining time not enough wanna complain de module chair person what de point its not like they will allow another retake
off to meet minting & ...
JOAN
its a love story baby just say yes.
joan tan
071090
why bother to explain
myself to anyone,
cause de one that loves me,
dont needs it
de one that hates me
never believe it
