Discuss the probable reasons for this bullwhip effect

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Reference no: EM132563121

Al Rawabi Dairy Company is a leading dairy and juice company in the UAE with a wide range of products from milk, yogurt, laban, juice, and functional products. Currently, Al Rawabi operates in the UAE, Oman, and Qatar serving more than 12,500 stores with fresh products.

At its farm in Al Khawaneej, Al Rawabi has a cattle stock of 13,500 cows. Starting in 1989 with 500 imported cows, Innovation is at the core of the company - it introduced the plastic bottles in 1991 in the UAE and is the first company to introduce fresh juices in the GCC in 1995. It is also credited with introducing pasteurized juices in the region and functional products in the dairy industry - such as Nutree Boost and Super Milk.

The company has realized that during the Ramadan season some of its products are not available in the various retails outlets in UAE. The company realizes that the shortage of its milk products occurs in spite of its special focus on the supply chain network and other precautionary measures. (Source: Website of Al Rawabi Dairy Company in UAE)

Task 1:

Discuss the probable reasons for this bullwhip effect and suggest the solutions to fix this problem in the UAE context

Task 2:

Suggest a suitable supply chain strategy for this company in the UAE context.

Reference no: EM132563121

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