SUPPLY CHAIN MANAGEMENT

 

Demand forecasting

Acting on forecasting

Information sharing in a supply chain

The role of distribution channels and intermediaries

Mass customization

 

OPERATIONS AND MARKETING

 

Get the product to the right place at the right time in the right amounts

– Efficiently

 

Marketing:

– Why does marketing care?

Don’t want to run out of stock

What do we mean by “right” and “efficiently”?

 

The need for a forecast of demand

 

WHY DO FIRMS SCREW UP ON FORECASTS?

WHAT ARE THE CONSEQUENCES?

– too much: too much inventory K-Mart

– too little: loss consumers

 

HOW DO WE DEAL WITH VARIANCE OR VARIABILITY?

– what’s the first thing you want to do when you have variability?

Prediction= Forecast

– what exactly is a forecast?

– what should a forecast tell you?

– possible scenario might happen/ the likely estimate and also the likelihood of the error

– it is reraly a single number

– always almost wrong

 

Village idiot’s Solution

 

– Average doesn’t capture the variability at all.

 

How to make decisions?

– Look at all the possible scenarios

– Figure out the cost of different scenarios

– Make decisions

 

THE ROLE OF DISTRIBUTION CHANNELS AND INTERMEDIARIES

– wholesaler, middleman, agent, go-between, broker, retailer, VARs – many words for intermediates

 

DISTRIBUTION CHANNEL CHOICES IN A SIMPLIFIED SUPPLI CHAIN

 

ECONOMIES’ SCALE

 

ZARA VIDEO:

Have the right information (from stores/ what we don’t have and we should/ personal communication with managers)

Introduce the collections

 

– ZARA’s fast fashion model is not easy to do, or to copy

– mass coustmazion