Question: Please read the article How Kimberly-Clark Keeps Client Costco in Diapers https://www.wsj.com/articles/SB968280984220197729 In the Return to Unisex Section, it states that Before Kimberly-Clark began managing
Please read the article How Kimberly-Clark Keeps Client Costco in Diapers
https://www.wsj.com/articles/SB968280984220197729
In the Return to Unisex Section, it states that Before Kimberly-Clark began managing Costco's inventory, in late 1997, the retailer would keep an average of a month's supply of Kimberly-Clark products in its warehouses. Now, because Kimberly-Clark has proven it can replenish supplies more efficiently, Costco needs to keep only a two-week supply. What's more, Costco says its shelves are less likely to go empty under the new system. In other words, under the new system, Costco achieves a higher service level with fewer inventories. Please link this achievement to the Bullwhip effect and provide an explanation for this achievement.
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