Supply chain management at real time customer demand

Abstract

In a supply chain, unforeseen demand, called bullwhip effect, is problematic. It causes increased inventory, irregular capacity utilization, and reduced service level. Most customer products companies realized that developing a dynamic demand driven supply network (DDSN) could provide the pathway with their line and in stock levels to true customer focus, because customer expectation have completely changed. These supply networks depart from the traditional systematic manufacturing "push" of products to market that meets not end customer demand only for distribution center. Because of the new technology and globalization that unconstrained by geography, a customer might choose to buy from a brick and mortar retailer nearby but can also shop online for better availability, selection and price, DDSN has focus to around customer actually "pull" products to the point of sale. The focus of this research is on demand fluctuation that cannot be controlled but can be effectively managed if DDSN have included responsive replacement, collaborative planning, forecasting, streamlined the supply chain to deliver greater profits through efficiencies and collaboration among trading partners with respect to increase sales of full priced merchandise to adopt customer desires different things at different time.