Managing demand variability through information sharing: a case study of imperial cold logistics
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Date
2018
Authors
Subiah, Amanda Renelle
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Abstract
Supply Chain Management (SCM) aims to improve coordination among the various members of
a supply chain (manufacturers, distributors and retailers) to increase transparency and reduce the
impact of demand variability. The supply chain is currently struggling with the classic symptoms
of a mismatch between supply and demand, low sales forecast accuracy, high and aging
inventory, as well as low customer service. Because of fluctuating demand and complex
interactions among various organizations in the supply chain, the management of the supply chain
becomes increasingly challenging. Variability is one of the costliest problems in supply chains,
particularly when it amplifies as it flows up the chain. This phenomenon is known as the Bullwhip
Effect (BWE) and has drawn much attention in the study of SCM. Anything that is done to stabilise
the flow of demand across a supply chain will improve the performance and will result in
substantial advantage over chains that must cope with higher levels of variability. The focus of
this research was the management of demand variability through information sharing, with a
specific focus on Imperial Cold Logistics. As this was an exploratory case study a variety of
sources were used to gather information. As part of the study the impact of the BWE across a
three-stage supply chain was quantified consisting of a single manufacturer, a single distributor
and a single retailer. The results of the study demonstrate the improvement that information
sharing has on service levels resulting in improved financial results to all members in the study.
The benefits have been quantified for the parties in the supply chain. The study proposes several
information sharing mechanisms that can be applied across supply chains.
Description
A research report submitted in partial fulfilment of the requirements for the degree of Masters of Commerce University of the Witwatersrand, 2018
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Citation
Subiah, Amanda Renelle (2018) Managing demand variability through information sharing :a case study of imperial cold, University of the Witwatersrand, Johannesburg, <http://hdl.handle.net/10539/27080>