Question: Please read the below commentary and answer the Question As economies went into lockdown and consumers flocked to stock up on essentials, one item in
Please read the below commentary and answer the Question
As economies went into lockdown and consumers flocked to stock up on essentials, one item in Singapore was overwhelmingly in demand was eggs. For periods in March and April, they were frequently missing from grocery shelves, both digital and in store. Distributors in the import-dependent city state scrambled to increase their stocks.
Fast forward to Jun, these distributors had to throw away more than 250,000 eggs due to oversupply.
The wild swing from deficit to surplus, known in logistics circles as the bullwhip effect has highlighted the susceptibility of supply chains to such shocks. The bullwhip effect distorts demand information within the supply chain, with each stage having a different estimate of what demand looks like.
QUESTION
One outcome of the lack of supply chain coordination is the bullwhip effect, in which fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufactures to suppliers.
The fundamental challenge today for global supply chain is to achieve coordination despite multiple ownership and increased product variety. Critically discuss the actions a supply chain manager can take to help overcome the obstacles and achieve coordination in the supply chain with relevant example.
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