Question

Discuss how a minor change in demand at the retail level can significantly impact supply chain variation at distributors, manufacturers, and suppliers.

Answer 1

Answer:

The changes in the demand do mean that the demand could be increased or decrease for the need for the product and the services by the suppliers.

Explanation:

The minor changes in retail development can cause the bullwhip effect at the entire chain supply. The demand for the forecast at the retail level does not seem accurate always.

Thus all the organizations used some safety tools for some of the stock because of the fluctuation in the demand of the product. When demands get fluctuate, the capabilities of the safety stock that is reserved for the distributors to get offset to the manufacturer.

This burden is shared with the suppliers. But at each stage of the process, the demand exponentially increased.