Optimize visibility of final demand in the supply chain (PDF)

Studienarbeit aus dem Jahr 2017 im Fachbereich BWL - Beschaffung, Produktion, Logistik, Note: 1,0, Ernst-Abbe-Hochschule Jena, ehem. Fachhochschule Jena, Sprache: Deutsch, Abstract: The problem in the simulation game "Supply Chain Simulation Module" was that the different players of a chain (supplier, manufacturer, retailer / wholesaler (customer)) communicated exclusively with orders in order to fulfill the given market demand or the needs of their teammates. Due to delays in deliveries, there were increased orders in period three, which already exceeded the final demand as a whole. This led to a chaotic ordering and / or demand behavior. The uncertainties in the demand forecast initially led to bottlenecks. The bottlenecks led to higher safety stocks, which led to overproduction. This led to a negatively evolving supply chain that affected the company. This phenomenon is also referred to as a bullwhip effect.

In this assignment, a possible cause, which has strengthened the bullwhip effect, is investigated. The role of the author in order management as well as the presentation topic "Information and Funds Flow in Supply Chains" are taken into account. During the execution of the planning game, the author was free to choose within the order management whether he should initiate an internal production or serve the customer demand from the warehouse. This free decision leaves a very high risk of the bullwhip effect taking place. Decisions are made without knowing all possible outcomes which can have a reverberating effect on the entire company. For this reason the assignment is being investigated. It is researched which tools are necessary for the order management to make secure and reliable decisions in the future. In addition, it will be shown how the communication within the company can be improved.