Context of caterpillar supply chain

Assignment Help Business Management
Reference no: EM132915103

Caterpillar Inc. recently told its steel suppliers that it will more than double its purchases of steel this year but the suppliers haven't seen a trend in increasing sales. In fact, the heavy-equipment maker, Caterpillar, has been boosting orders to suppliers for everything from big tires and hydraulic tubes to shatterproof glass without a sales increase.

1) How is that possible? In other words, what are some possible scenarios that would lead Caterpillar to act this way?

2) Within the context of Caterpillar's supply chain, explain how the "bullwhip effect" can occur and what problems it may cause its Tier 1 and Tier 2 suppliers if sales do not rise in the future.

Reference no: EM132915103

Questions Cloud

Why is marketing research important to franchisor : -Studies show that buying a franchise is not a guarantee of success. Before we venture into franchise, how do you know that franchising might not be suitable fo
Irony manifest themselves in story or work : Analyze it for how plot, character, setting, point of view, symbolism, theme, tone, style, and irony manifest themselves in the story or work.
What sort of expectations do investors seem to have : Apnex, Inc., Based on the current share? price, what sort of expectations do investors seem to have about the success of the? trials?
Discuss how countertrade can facilitate international trade : 1. Identify the factors that influence a firm's choice of entry mode. 2. Discuss how countertrade can facilitate international trade.
Context of caterpillar supply chain : Caterpillar Inc. recently told its steel suppliers that it will more than double its purchases of steel this year but the suppliers haven't seen a trend in incr
What is the profit or loss associated with Copper : Allocate the joint costs using relative weight. With these costs, what is the profit or loss associated with Copper
What is the price per share of NoGrowth Corporation : NoGrowth Corporation, It will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 15% per year?
What is a contract executed with an alien enemy : In a 2013 report, Gartner categorized business intelligence vendors as either an independent "pure-play" vendor or a consolidated "megavendor".
Meaning and relevance of the learning curve theory : 1. What is the meaning and the interpretation of the Independence of observations in relation to autocorrelation

Reviews

Write a Review

Business Management Questions & Answers

  Illustrate what is the standard error of p

If proportion of students, from a sample of 121 students who have taken a basic statistics course is p, illustrate what is the standard error of p.

  Prepare flexible budget and show variances for the year

Prepare a flexible budget and show variances for the year that passed. Indicate whether the flexible budget variances are favorable or unfavorable.

  How were employees affected by the legislation

What were the major circumstances that led to the passing of the legislation? How were employees affected by the legislation? How were unions affected by the legislation? How were employers affected by the legislation?

  What are the expectation of managers and supervisors

What are the expectation of managers and supervisors in relation to budget or financial plan?

  Implement differential pricing

Please select three following ways to Implement Differential Pricing, explain them and provide a hospitality-related example of each

  Short run aggregate supply curve

Q1. Lower cost cause the short run aggregate supply curve to shift to the? Southeast, Northwest, or neither?

  Gain specific knowledge about the marketing activities

Visit any retail establishment of your choice in order to gain specific knowledge about the marketing activities of the operation. Provide a 2-3 page report on your visit using at least two references (one reference to be the textbook) to support ..

  Why does johnson and johnson offer a board range

Johnson and Johnson offers a board range of personal hygiene and medical products, ranging from baby products, women's health and personal care products to pres

  Freds demand for health services

Suppose, if ill, that Freds demand for health services is summarized by the demand curve Q=50-2P, where P is the price of services. How many services does he buy at a price of $20? Suppose that Fred's probability of illness is 0.25.

  Imposing minimum capital requirements

What is the economic rationale for imposing minimum capital requirements on banks but not non-banking firms? Briefly explain.

  The hudson river cleanup and ge

Who is responsible for the contaminated Hudson River? GE? EPA? State of New York? Local citizens? What ethical principles help to answer this question?

  What is the proton speed

A proton is released from rest at the positive plate. What is the proton's speed when it reaches the negative plate?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd