Question

How can an understanding of operations management, supply chain management, and electronic commerce technologies (Information systems) help to reduce the bullwhip effect?

Answer 1

Answer

✓ bullwhip effect occurs when a small increase or decrease in the demand at retail level, impacts greatly on the supply chain, wholesalers, raw material suppliers and manufacturers.

An understanding of operations management helps to effectively manage the inputs and outputs, and also to maximize outputs, with greater efficiency. Supply chain management helps to manage and streamline all the activities, from storing the products to distributing it to the retailers or customers, to meet demand. And Information system helps in exchange of valuable datas and meet the orders that meets the requirements, and to satisfy the customers. With ease in information flow, demand can be accurately predicted, with that there will be effective management of operations and prudction and there will be timely delivery of the goods. Thus reducing the bullwhip effect.