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Dist MGT GRP 3
Dist MGT GRP 3
GROUP 3
Progga
S Fateeha Zannat Tanjin
Manufacturer
Distributor
Wholesaler
Retailer
Delivery plans
Rationing game
Order batching
Price variations
An Idealized Situation
Project the demand pattern based on Distributors rely on retailers orders to forecast demand Manufacturers rely on distributors orders
Multiple Forecasting
Information sharing among members of the chain Avoiding multiple demand forecast updates Vendor Managed Reduction in lead times
Rationing game
If Demand > Production Capacity retailer will issue
an exaggerated order more than their actual demands. Then the demand information will be distorted further if retailers are allowed to cancel orders when their actual demand is satisfied .
sales records
Share capacity and inventory information Enforce more strict cancellation and return policies.
Order Batching
Retailers :
Transportation costs Order processing costs
Distributor :
Balanced Ordering Orders from different retailers are evenly distributed in time
Price Variations
When a manufacturer offers an attractive price, retailers engage in "forward buy" arrangements in which items are bought in advance of requirements Retailers buy in larger quantities that exceeds their actual needs. When the product's price returns to normal, they stop buying until the inventory is depleted. The customer's buying pattern does not reflect its consumption pattern.
Keep high & low pricing practice but synchronize purchase & delivery schedules