Reference no: EM131178823

1. The bullwhip affect is the result of poor communication and inaccurate demand forecasting. The demand forecast comes in from the retailers and if they are overestimating their demand so they are making larger orders. The salesman see the larger orders so he is requesting more for his warehouses or whatever his part of the supply chain is to cover the larger orders. then the manufacturer sees the increase and he adds more assets to keep up with the increase in demand from he salesman and the warehouse. Since the manufacturer is increasing production the supplier of the raw materials than increases there production capabilities because the manufacture increased production. Meanwhile while all of this is going on throughout the chain the retailer who over estimated their demand now has extra product on their shelf. SO they call the salesman and the warehouse and cancel all orders and place no further orders. The warehouse cancels all orders from the manufacturer who then cancels all raw material supplies. Now this all takes time but by the time the components furthest away from the customer respond to the false increase in demand due to poor forecasting they are already cutting orders as the customer level to fix their problem causing the manufacturer to have to layoff workers or whatever to keep running profitably.

2. How would you describe the distinction between supply chain management and value chain management? What are the differences?

150-200 words plz separate answers