What factors lead to a batching of orders within a supply chain? How does this affect coordination? What actions can minimize large batches and improve coordination?
Answer to relevant QuestionsHow do trade promotions and price fluctuations affect coordination in a supply chain? What pricing and promotion policies can facilitate coordination? Discuss how various costs for the supermarket change as it decreases the lot size ordered from Proctor & Gamble. Why is it appropriate to include only the incremental cost when estimating the holding and order cost for a firm? What is the impact of supply uncertainty on safety inventory? What are some scenarios in which postponing product differentiation across all products may not be profitable? How can tailored postponement help in such situations?
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