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BULLWHIP EFFECT

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by

Jocelyn Romero

on 22 November 2013

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Transcript of BULLWHIP EFFECT

BULLWHIP EFFECT
“Increase in variability as one travels upstream in the supply chain “.

Coca Cola and its Minutes Maid and Simply Orange brands:
For Coca Cola, Producing orange juice in consistent quality requires complicated process. Coca Cola uses computerized system called Black Book. This system uses algorithm to produce information how to blend batches of orange fruits to replicate certain taste and consistency.

Capacity Management & Planning Strategy
Brett Frankenberg, Vice President of SC Planning and Procurement at Coca-Cola Bottling Company Consolidated, presents at JDA FOCUS CONNECT 2011
Inventory Management
Facilities
Efficiency
Inventory
Efficiency
Transportation
Efficiency
Information
The Four Drivers in Supply Chain Management
Effectiveness
Minimal excess capacity
Low number of facilities
Multiple product focus
Single Inventory Storage Location
Low levels of inventory
Ship products to a distributor
Reduces Cost and Speed of delivery
Effectiveness
Push Strategy
Shares only selected information
Proces
Design
LINE PROCESS
Carla Polo
Rémi Schockmel
Jocelyn Romero

Single firm,
variety of products
Operating Principles
Design Criteria
Handling Technology
Storage Plan
# of stories: Single story
Height: 6-9 mts.
Product Flow: Straight-line product
Movement Continuity...
...Fewer longer moves
Movement Scale Economies
Pallets
Customer
Strategies
Private warehouse &
Operating Flexibility
Presence Synergies
World Class
Supply Chain
Full transcript