b.

From your experiences during the supply chain simulation, what do you think contributes to
the bullwhip effect?

Supply chain management problems that can occur include the bullwhip effect. I've
discovered from playing simulation games that the bullwhip effect can be caused by a number
of things, including

Demand forecasting: Improper demand forecasting can result in either an over or undersupply
of goods, which can amplify the bullwhip effect. This is due to the possibility that upstream
supply chain participants may overreact or underreact to the actual demand in response to
the distorted demand signal.

Lead times: Longer lead times may drive producers to overproduce goods in expectation of
future demand, which may intensify the bullwhip effect. Overproduction and excess inventory
may result. I've noticed in simulation game that cutting lead times can be a good way to deal
with this problem.

Order Batching: The bullwhip effect can be exacerbated by inefficient ordering procedures,
such as ordering products in big quantities or at irregular intervals. Because of overproduction
and surplus inventory, merchants and distributors may order more products than they actually
need in anticipation of future demand.

The bullwhip effect can be attributed to a lack of coordination between the various supply
chain participants. This can happen when participants withhold data on inventory levels,
demand projections, and other vital information that might help producers make decisions.

Price swings might force consumers to hoard items or forego purchases completely, which can
result in brief increases or decreases in demand that can amplify the bullwhip effect.

c. Critically examine what are the variations of real-life supply chains (eg. in e-commerce,
SCs with economies of scale etc.) from the simulated supply chain?

Real-world supply chains differ from simulated supply chains in a number of ways. Different
e-commerce supply chains, supply chains with economies of scale, and supply chains with
local or international distribution networks can all be examples of these variances.

Supply chains for e-commerce: Supply chains for e-commerce are different from traditional
supply chains in a number of ways. For instance, supply chains for e-commerce may have
shorter lead times, more fluctuating demand, and a stronger focus on transportation and
distribution. Fulfillment centres are more prevalent in e-commerce supply chains, and
inventory control is essential to ensure quick delivery and great customer satisfaction.
Economies of scale in supply chains: In supply chains with economies of scale, producers
frequently are able to produce goods at a reduced cost per unit, which can result in
substantial cost savings. The management of these supply chains, however, can be more
difficult because it calls for careful planning to make sure that the advantages of economies
of scale are realised to the fullest without generating extra inventory or supply chain
disruptions.

Regional or global distribution networks: As compared to localised distribution networks,

supply lines with regional or global distribution networks are more complex. These supply
networks necessitate greater cooperation between various players, such as producers,
retailers, and transportation companies. To ensure that products are transported effectively
and affordably, they also call for more significant investments in distribution and logistics
infrastructure.

It is frequently simpler to handle these variations in simulated supply chains because they can
be clearly modelled and taken into account. However, these variations can bring more
significant uncertainties and complexities into real-world supply chains, necessitating careful
management and planning. The performance of real-world supply networks may also be
significantly impacted by external variables like weather-related events, political disruptions,
and changes in trade policy. Therefore, when planning and overseeing supply chains in the
actual world, it is crucial to carefully take these variations into account.