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Chapter 10- Coordination in a Supply Chain (Coursework Sample)


Chapter 10 - Coordination in a Supply Chain
What is the bullwhip effect and how CPFR can benefit the supply chain partners minimizing the bullwhip effect?
Discuss some of the pricing and promotion policies that can facilitate coordination.
Chapter 17 - Sustainability and the Supply Chain
What do you understand by the tragedy of commons? Discuss some of the solutions to this tragedy.
What do you understand by reverse logistics and closed-loop supply chains? Discuss some of the challenges involved in integrating forward and reverse supply chains.


Chapter 10 and Chapter 17 Questions.
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Chapter 10- Coordination in a Supply Chain.
What is the Bullwhip Effect and how CPFR can benefit the supply chain partners minimizing the Bullwhip Effect?
The bullwhip effect is the term used to refer to the lack of supply chain coordination which can be best described as “fluctuation in increase of orders as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers” (Chopra and Meindl, 2016, p.249). CPFR is "a business practice that combines the intelligence of multiple partners in the planning and fulfillment of customer demand" (Chopra and Meindl, 2016, p261).
To obtain a successful CPFR, involved groups are ought to have a perfect synchronization of their data by establishing the correct form of data exchange. Moreover, the parties can use the CPFR to align their objectives and goals by creating ways that they can use to exchange data effectively and appropriately. Furthermore, a firm can utilize the CPFR model to strengthen, deepen and actualize the means of communication between the retailers, suppliers and wholesalers, a notion which will reduce levels of inventory within the supply chain and align the demands and supply of products to the customers.
Discuss some of the pricing and promotion policies that can facilitate coordination.
The first pricing and promotion policy is stabilizing pricing which pricing "can dampen the bullwhip effect by eliminating promotions and using everyday low pricing (EDLP)" (Chopra and Meindl, 2016, p.260). This method ensures that deliveries completely match with the demands of the customer by reducing forward buying. The second one is altering sales force incentives which reduces the bullwhip effect by minimizing the incentives that a salesperson would have exhibited as well as reducing forward buying through effective flow of orders. Lastly, the policy of pricing for coordination comprises two methods where a firm can utilize the first method to create two tariffs in order to obtain coordination of the supply chain. The firm can also use the second method to obtain suitable pricing by giving discount, hence coordination.

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