Difference Between Push and Pull
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Difference between push and pull?
In what managerial roles are information systems helpful?
Information systems are very helpful for Information storage and helps managers to analyze their business using the information stored which also gives a hand to managers to make better decisions. Enhances business processes are possible only with good information systems. It’s also very helpful in managing interpersonal roles as they represent their respective companies to the outside world as leaders supporting, motivating and counseling subordinates. Information systems are like liaisons between different organization levels.
What causes bullwhip effect and how is it addressed?
Bullwhip effect is a recurring problem in supply chain management. The information about the demand for a product gets distorted as it passes from one entity to the next across the supply chain. Bullwhip effect refers to the trend of larger and larger swings in inventory in response to changes in customer demand, as one looks at firm’s further back in the supply chain for a product.
The bullwhip effect can be addressed by reducing uncertainties about supply and demand when all the members of the supply chain have accurate and up to date information. If all supply chain members share dynamic information about inventory levels, forecasts and shipments they can have more precise knowledge on how to manage their manufacturing and distribution plans.
It can also be addressed by establishing demand driven supply chain which reacts to actual customer’s orders. Ex: Walmart’s point-of-Sale (POS). It is one of the best strategies they ever used. Point of sale maximized profits for the wal-mart group.