Question

Part I. Bullwhip Effect

Answer the following questions
1. Explain what the Bullwhip Effect is.
2. Explain why Volvo manufacturing department believed that consumers had started to like green cars in the mid-1990s.
3. (1) Discuss how the Bullwhip Effect can be reduced in general and
    (2) how IT (Information Technology) can be used to reduce the Bullwhip Effect.

Part II. Superefficient Companies

Answer the following questions
4. (1) Briefly describe the problem(s) that Geon faced after Geon divested its VCM and resins operations to OxyVinyls.
    (2) How did Geon address the problem(s)?
5. (1) Briefly describe the problem(s) at General Mills.
    (2) How did General Mills address the problem(s)?

Solution Preview

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The Bullwhip Effect is a phenomenon that occurs when the parties in the supply chain, the buyers, sellers, suppliers and manufacturers, have lack of coordination. This lack of coordination stems from the inadequate understanding of the real demand and the decisions made by the different parties based on this understanding....

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