STRATEGIC OPERATIONS MANAGEMENT(EBUs602) ASSIGNMENT Essay

STRATEGIC OPERATIONS MANAGEMENT(EBUs602) ASSIGNMENT - Essay ExampleBy reducing the order delivery time, they will decrease fluctuations as well as costs and inventory levels (Wangphanich, Kara, & Kayis, 2010 p4508). P&G then turned their attention to POS purchases at their main distributors and retailers to track ordering trends and preferences respectively. Using a point-of-sale system will allow P&G to identify trends and improve parley along the chain of bestow (Wang et al. 2012, p. 120). P&G also sought to get the main retailers to reduce their order sizes relative to demand. Ordering according to the inevitably of the consumer, rather than to stock, will aid P&G in attenuating the impact of the bullwhip effect (Wangphanich, Kara, & Kayis, 2010 p4509). P&G then utilised the improved communication and fortune telling to maintain consistency in price. This will prevent increased ordering when prices are low, lessening the bullwhip effect (Wang et al. 2012, p. 120). Other appro aches that P&G could have interpreted include Portfolio planning, in which they could diversify the distributor base into a group that is on long-term contract terms to meet the major demand, and others on short-run contract terms to cover any increase in demand (Gupta & Mishra 2012, p. 27). Postponement, in which they would delay delivery of the product to their distributors until they have reliable information on demand (Gupta & Mishra 2012, p. 28). Q 2 The demandsupply crack at Cisco occurred for a number of reasons When supply is exceeded by demand, the manufacturers such as Xilinx produced more components for the consumers, who may have ordered more products than required to generate profit. After supply caters to normal demand, orders may be cancelled, which results in unwanted inventory (Thompson & Liang-Chieh 2012, p. 120). A gap between demand and forecasting may also have caused the demandsupply gap, especially if Ciscos planning team forecasted demand through with(pre dicate) extrapolation of demand at present. Small fluctuations result from long lead-time extrapolation, which ends up having a huge impact on the demandsupply gap (Akkermans & Voss 2013, p. 770). Use of gage orders for small and frequent orders may have been made to reduce storage costs or logistics. This could result in increased demand variability compared to supply (Thompson & Liang-Chieh 2012, p. 121). Price fluctuations due to anticipation that there will be a price increase could have led to items being stocked up to capitalise on low prices. This leads to variation between supply and demand (Akkermans & Voss 2013, p. 771). These arrangements could have resulted in a pileup of Ciscos inventory, as forecasters did not notice schmalzy inflation within their projections. Since many of the companys clients ordered similar products from competitors so as to close the deal with the company that delivered on their orders first, Ciscos demand forecasts were inflated by triple and double orders (Thompson & Liang-Chieh 2012, p. 121). Their supply chain management system was unable to indicate the increased demand. This was representative of overlapping orders, principal to a vicious cycle of demand that was inflated artificially, increased costs, and ugly communication along their chain of supply (Akkermans & Voss 2013, p. 771). For these reasons, it is clear that the biggest problem had to do with poor communication across the chain of supply. To counter this, Cisco integrated an