Part A In the beer game, the two main problems that cause high inventory or backorder costs associated with the ordering policy of each participants; are the uncertain demand and the lack of communication between different participants in the game who are the retailer, wholesaler, distributer and manufacturer. In order to operate the supply chain efficiently, the participants of the beer game should be in a coordination to fulfill the customer demand. In the first weeks, our inventory could keep up with the incoming orders in the supply chain which is the ultimate affect of the uncertain customer demand. As the wholesaler, I was dealing with the orders of the retailer who is responsible for the direct customer orders which was stable at …show more content…
Because I did not expect the demand to be stable at 4, my inadequate order quantity lead to backlogs to fulfill the retailer’s request. When I started to backlog the demand, I decided to increase my order quantity to eliminate backorders and still have an inventory policy that minimizes the total cost. However, there was an unexpected delay in the fulfilling of my order from the distributor. The amount of beer that I requested couldn’t be delivered and I received shortages in my deliveries in the second and the third quarters. Because the demand was stable and not decreased when my inventory level was under zero, my effective inventory got even more negative. When I started to receive my initial requests from the distributor which were in high quantities to effectively minimize the backlog cost, my effective inventory started to approach zero …show more content…
So that our decisions would lead to a better performance on the inventory levels which means a more stable inventory according our policies but our order policy based on the expected demand would not be changed while the impact of our policy on the inventory is better because our orders are met with a better
Justin drinks a whole case of beer each day by himself and during the weekends he spends countless hours in the bar with his friends. His wife, Susan has brought it to his attention that she believes that he has a drinking problem. Oftentimes Susan and their children would find Justin passed out in the shed in the backyard where Justin’s “man cave” is also. He has been written up at work twice for falling asleep on the job because he has had a hangover and if he gets another one it will result in termination. In response to his wife 's allegations Justin says that he can stop drinking at any time and that he just drinks to relax himself after a long day at work, because his boss rides his back. Justin also says that since he works all week and have to come home to Susan nagging him and screaming kids, he looks forward to getting away to spend time at the bar on the
This case involves the suspect being arrested for driving under the influence of alcoholic beverages in violation of CVC 23152(a)-DUI.
Even though excessive stock could be an advantage when it comes to the different seasons or could even mean there is a higher service rate, also a demand for that product. Could also be consider as a safety stock, which could be consider for having that leeway of products for your busiest seasons like the holidays. Without a plan when it comes down to inventory, you might face a financial burden if you don’t keep track of what’s happening inside of your business.
In the retail stores, managers are complaining of frequent stock outs even though the DC is full of merchandise, which is not moving enough through the supplier, DC, and retail stores. The inventory issue also ties in with transportation problems where accurate lead and delivery times are non-existent. The inventory turnover is not at its full potential because if the DC has merchandise yet the stores are stocked out, the inventory is frozen and will become obsolete.
Stock control is simply done by presuming certain amount of stock is being delivered which of course has a down side as well.
Throughout the many years, college students have engaged in many activities to either entertain themselves or pass endless time. These activities have ranged from sports, either intramural or varsity, to various clubs and organizations devoted to students personal interests. While these have sparked interest and lasted a long time, none has exceeded the expectations of the wonderful game of beer pong.
The stores will also be able to communicate better and maybe swap their inventory when a particular stock is doing better in on store and vice-versa. This will help reduce production costs as the store which has run out of its popular garment pieces will not request for more.
The beer market has turned itself into an oligopoly in the past 100 years. Where there once were hundreds of brewers across America, there now are just a few major players in the industry. But what is an oligopoly? As defined by Ayers & Collinge in the textbook Microeconomics, “an oligopoly is characterized by multiple firms, one or more of which will produce a significant portion of industry output”(microeconomics). Oligopolies exist where a few large firms producing a homogeneous or differentiated product dominate a market. There must be few enough firms so that they are mutually interdependent, which means they must consider rival’s reactions in response to decisions about prices, output, and advertising. The causes of the beer oligopoly are as followed: 1. Economies of scale exist, which indicate that a few large firms would be more efficient that many small ones. 2. A high degree of capital investment required. 3. Other barriers to entry may exist like patents, control of raw materials, large advertising budgets, and traditional brand loyalty.
However, not everything at wheeled coach was operating so perfectly. As mentioned earlier Wheeled Coach had a major problem in excess inventory. One reason for this was that their bill of materials accuracy was way below standard. When orders were received by Wheeled Coach, the list that tells them the multiple different parts required to make the particular model of ambulance that was ordered, was listing incorrect components. Due to this mistake, a domino effect caused purchase order inaccuracy, as orders are placed according to the bill of materials. Before Wheeled Coach was able to realize that this was an issue they had stock piled copious amounts of excess materials that were not needed in current orders. The final operating failure that Wheeled Coach is experiencing is a different matter entirely. Sales forecasting is not linked to bill of material accuracy or purchase order accuracy, but Wheeled Coach’s inability to estimate their future sales has contributed to the increase ...
Beer has become one of the most popular and desirable beverages since its creation. Ever since the birth of the first American beer in 1587, this common beverage has been consumed by millions of people, not only for the enjoyment within a social environment, but also for its unique taste (Beer Advocate). Although beer has been present for a considerable amount of time, the process of manufacturing it has changed dramatically since the olden days. One might think that brewing beer is fairly easy, but that is an understatement. Brewing beer not only requires several resources but also a lot of time and labor. Tempo Beer Industries, Israel’s top beverage company, manufactures an assortment of products including energy drinks, soft drinks, wine, and last but not least, beer. Most of the products Tempo Beer Industry has made have assisted in the company sky rocketing to success, but Goldstar Beer has become Israeli’s top selling beer, which is only produced by Tempo Beer Industries itself.
Reducing risk ; reducing the quantity of manufactured so that reducing burden of stock and burden of frequent discount sales
Inventory management is a method through which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle of the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seen more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company; effective and efficient inventory management is of critical importance.
With most aspects of life it is frequently the failures, as opposed to successes, from which we learn the most indelible lessons. With this approach in mind, The Beer Game to a large extent serves as the very antithesis of a properly functioning supply chain. In other words, the exercise demonstrates how NOT to manage a logistic operation. Hopefully, an examination of the pitfalls and shortcomings of a worst case scenario and avoiding the same types of mistakes will lend insight how to correctly manage a supply chain. What otherwise appears as a simple classroom exercise actually represents a powerful training tool with enduring lessons directly transferable to real world application.
...nager) to think of idea to get many orders. They found Europe market is the way to fill the capacity. However, new orders created new bottlenecks. Consequently, two things were done. First, the inventory is increased. Second, the delivery period is increased twice than before.
Visibility not only means on-shelf inventory but also means inventory piled up at all levels of supply chain including in transit inventory and inventory piled up across company’s network. Visibility allows concerned people in supply chain to forecast problems before they occur and taken necessary steps to avoid expense in the real time. Two drivers of this savings through visibility come from PO lifecycle and ASN (Advanced Shipped Notice, Inventory) accuracy.