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You are a beverage wholesaler who regularly sells 1,500 soda cans to a customer each week. One week, the customer orders double the usual amount. You assume that demand is increasing. Therefore, you purchase 4,000 cans to ensure you don't run out of stock. (PS This qs is related to bullwhip effect)
a) Explain the dynamic effect that may result from this order behavior.
b) Elaborate two possible measures to avoid this effect.
c) Which stakeholders should be considered for implementing those measures?
A restaurant uses 5,000 quart bottles of ketchup each year. What is the most economic order size? What is the total ordering cost of this policy
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