The bullwhip effect on the supply chain occurs when changes in consumer demand causes the

companies in a supply chain to order more goods to meet the new demand. The bullwhip effect usually
flows up the supply chain, starting with the retailer, wholesaler, distributor, manufacturer and then the
raw materials supplier. This effect can be observed through most supply chains across several industries;
it occurs because the demand for goods is based on demand forecasts from companies, rather than
actual consumer demand.

The supply chain operations reference model (SCOR) is a management tool used to address, improve,
and communicate supply chain management decisions within a company and with suppliers and
customers of a company. The model describes the business processes required to satisfy a customer’s
demands. It also helps to explain the processes along the entire supply chain and provides a basis for
how to improve those processes. The SCOR process can go into many levels of process detail to help a
company analyze its supply chain. It gives companies an idea of how advanced its supply chain is.

Packaging also plays an integral role in supply chain management. It protects products from damage,
allows for their efficient distribution, communicates to the consumers, and is one of the major product
promoters in a competitive marketplace. In fact, packaging design has recently developed into a mature
communication discipline on its own – and clients now realize that packaging is a critical and central
element in the creation of an effective brand identity. In order to achieve a successful supply chain
management, packaging systems have to be connected with aspects of marketing, logistics, productions,
and the environment.

The ABC analysis (or Selective Inventory Control) is an inventory categorization technique. ABC analysis
divides an inventory into three categories- “A items" with very tight control and accurate records, "B
items" with less tightly controlled and good records, and "C items" with the simplest controls possible
and minimal records. 'A' items are very important for an organization. Because of the high value of these
'A' items, frequent value analysis is required. In addition to that, an organization needs to choose an
appropriate order pattern (e.g. ‘Just- in- time’) to avoid excess capacity. 'B' items are important, but of
course less important than 'A' items and more important than 'C' items. Therefore, 'B' items are
intergroup items. 'C' items are marginally important.