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WOOD SUPPLY GAME
Wood supply game is the logistics flight stimulator for the forest sector. It is developed on structure and dynamics of the beer game due to divergent and convergent flows. The following are the wood supply game effect and their impact on supply chain and contribution to bullwhip effect:
Lack of demand forecasting this leads to improper operation of the companies involved hence poor customer service level lack of information flow which leads to poor customer service level long lead time contributes to accumulation of backlog and inventory. Ordering policies and inflated orders (batch ordering in our stimulation) this leads to demand forecasting problem. Price fluctuations (e.g. promotions discounts and sales) this leads to bullwhip in that the customer orders more than they need. Supply chain design directed to customers instead of utilized distribution channels helps since information variation increases as we go up the supply chain.
Possible remedies for to increase supply chain performance include the following: Reducing uncertainty, Reduce variability, and Lead time reduction and Strategic partnering and buying. This will reduce variation in the system hence proper performance of supply chain.
It is not possible to completely eliminate the bullwhip effect, but certain care can be taken in order to ensure that it is reduced so that the end customer is least affected. To reduce the bullwhip effect, information technology can be used as powerful tool. Internet based information interchange plays in effective management of supply chain, by enhancing the supply and speed of information exchanged.
Lee, S, L Padmanabham V, and Wang, 1997; the Bullwhip Effect Supply Chain.
Walker, L, K and William T.A, 1999: Understanding supply chain management.
Metters, R, Quantifying the Bullwhip Supply chain Walker, L, K and William T.A, 1999: Understanding supply chain management.
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