Inventories in series: need for something different
3 important questions on Inventories in series: need for something different
The first problem of ROP techniques is the Bull-whip effect, what is this? What's the consequence of this effect?
- Small changes in downstream demand lead up to large upstream order variation (at factory level)
- Very high unwanted inventories in whole chain!
What's the third problem of ROP techniques? (name+meaning)
Unreliability effect: ROP techniques do not work well for ordering parts
Bepaalde servicegraad willen bieden.
Bv: afhankelijke vraag: werkt ROP niet: zie slide: daalt servicegraad van 95% naar helemaal 77%
Bepaalde servicegraad willen bieden.
Bv: afhankelijke vraag: werkt ROP niet: zie slide: daalt servicegraad van 95% naar helemaal 77%
Summarized: What are the 3 problems of ROP(=herstelpunt) techniques?
- Bull-whip effect (opslingerverschijnsel, Forrester effect)
- Causes:
- Partial information (no info on downstream demand)
- Lead time / order delay
- Order batching
- Discounts
- Lumpy demand effect
- Unreliability effect
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