INVENTORY MANAGEMENT

For this case study please read the article below concerning vendor-managed inventory (VMI) and the Bull Whip Effect (BWE).

Ravichandran, N. (2008). Managing bullwhip effect: Two case studies, Journal of Advances in Management Research, 5(II).

Abstract:

Purpose: The purpose of this paper is to present two examples based on real life experiences where the Bullwhip effect (BWE) in supply chain is considerably reduced. Both examples relate to the consumer durables industry in India.

Design/methodology/approach: The first example uses enterprise resource planning and vendor managed inventory as tools to reduce the BWE. The second example uses a modification of the classical inventory control policies to eliminate BWE.

Research limitations/implications: This paper could initiate research in an area which would help supply chain researchers and managers to understand why some companies are able to contain BWE and others are not.

Findings: Based on these two empirical case studies, the paper argues that managing BWE is a strategic initiative by organization and the best approach is a combination of several tactical initiatives.

Originality/value: This paper briefly summarizes the managerial approaches to tame BWE in two different contexts. The two examples have some similarities, differences and offer unique insights related to managing BWE.

Keywords: India, Supply chain management, Demand management, Consumer durables

Case Assignment

Then in a 5- to 6-page paper discussing this question. Be sure to use additional articles and resources to support your arguments.

Is VMI a valid method for reducing the BWE? How does it compare to other inventory management methods for reducing the BWE? What conclusions can you draw?

Assignment Expectations

Research the topic with information from the background readings as well as any other resources you find on your own. The paper should be 5–6 pages in length and have a cover sheet and a reference page. Clarity of presentation is important, as well as your ability to cover the topic in a succinct, organized manner with research to back up your points. Use at least 3 different sources of information and annotate your sources of information appropriately on your references page and within the text as necessary. You will be assessed on how well you develop this case and demonstrate your understanding of VMI and its many benefits and challenges. Submit your assignment for grading by the end of this module.