Question

If a large customer places a larger order than usual or changes that order on short notice, it can have a widespread impact throughout the supply chain. additional raw materials or a different mix of raw materials may need to be ordered from suppliers. manufacturing may have to change job scheduling. a transportation carrier may have to reschedule deliveries. information about changes is shared among the relevant business partners so that their work can be coordinated.

a. enable(s) a firm to model its existing supply chain, generate demand forecasts for products, and develop optimal sourcing and manufacturing plans.
b. the just-in-time strategy unselected supply chain execution.
c. the bullwhip effect unselected supply chain planning systems.
d. i don't know yet.

Answer 1

If a large customer places a larger order or changes it on short notice, it can have a widespread impact on the supply chain. The Bullwhip effect exemplifies how demand fluctuations can impact supply chain planning systems.

Step-by-step explanation:

If a large customer places a larger order than usual or changes that order on short notice, it can have a widespread impact throughout the supply chain. This can lead to various changes and adjustments in the supply chain, such as ordering additional raw materials or a different mix of raw materials from suppliers, changing job scheduling in manufacturing, and rescheduling deliveries through transportation carriers. Sharing information about these changes among relevant business partners is crucial for coordinating their work.

In relation to the given options, the correct answer is:

C. The bullwhip effect is an example of how changes in orders and demand can impact the supply chain planning systems. The bullwhip effect refers to the amplification of demand fluctuations as they move up the supply chain. The fluctuations become increasingly extreme towards the upstream suppliers, causing inefficiencies and inefficacies in planning and coordination.