Professional Documents
Culture Documents
Baertschi
Supply Chain World Europe 2002,
28-30 October, 2002, Amsterdam
Information (Orders)
Material
BWI
Observations:
Famous example:
Demand for Pampers disposal diapers,
analyzed and published by Procter&Gamble
BWI
Current
Demand
Current
Production
1‘000
Level
Planning:
• Changing forecasts lead to changing safety stocks.
Suppliers not only react on changed demand, they adapt
the level of safety stock. Thus variability increases.
• Procurement in batches adds variability
Behavior:
• Variability of prices (especially: promotions) has an effect
on variability of demand.
ZÜRICH
Information (Orders)
Material
ZÜRICH
Order received
Taking into account
from customer
• outstanding orders
• products in transfer
• and on stock
Orders Stocks
ZÜRICH
Customer
Retailer
Wholesaler
Distributor
Factory
BWI
lead time of
lead time of information
information and material
(1 period) (3 periods)
humans: 1526 €
BWI
Best solution
ZÜRICH
(Computers only)
100 250
BWI
Planning
• Reduce lead time of information
(orders, demand and capacity forecast, point-of-sale data
for the whole supply chain)
• Reduce lead time of material
(Just-in-Time, Postponement)
Behavior
• Decrease variability of prices
ZÜRICH
Christoph Duijts
• contributed a lot of good ideas for the Beer Distribution
Game online and
• implemented it in the course of his diploma thesis
ZÜRICH
BWI
http://www.beergame.lim.ethz.ch