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Supply Chains & System Dynamics
(1) What is your opinion on the questions below?
Case 1 focuses on beer as an end item, for the consumer. And you have to become familiar with part of the supply chain with you as a wholesaler. You will also experience the Bull-Whip Effect as you practice in the EBBD simulation. Consider the idea of feedback within a system. Feedback as some form of information that is used to make decisions about controlling rates of flow.
How does feedback, or the absence of it, help create the bull-whip effect? What feedback would you like to have, specifically, as you determine your weekly orders for Kentucky Swamp Brew? How would get such information? When would you like to have it?
This solution discusses how feedback and the absence of feedback creates the bull-whip effect. The feedback that is the most useful in order to determine weekly orders for Kentucky Swamp Brew is discussed, along with how and when to obtain such information.
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