Asked by ashanti morris on May 07, 2024
Verified
Sharing of POS data helps reduce the bullwhip effect because it allows each stage of the supply chain to use orders from the previous stage to forecast future demand.
POS Data
Information captured at the Point of Sale, tracking the details of transactions, customer behavior, and product performance.
Bullwhip Effect
The phenomenon where small variations in demand at the retail level cause progressively larger fluctuations in demand up the supply chain.
- Acquire an understanding of how the exchange of information contributes to the reduction of the bullwhip phenomenon and the advancement of supply chain cooperation.
- Grasp the concept of CPFR and its role in collaborative planning and forecast replenishment.
Verified Answer
SJ
Sharon JiangMay 12, 2024
Final Answer :
False
Explanation :
Sharing POS (Point of Sale) data directly with all stages of the supply chain allows for real-time demand visibility, reducing the need for each stage to rely solely on orders from the previous stage for demand forecasting, thus helping to mitigate the bullwhip effect.
Learning Objectives
- Acquire an understanding of how the exchange of information contributes to the reduction of the bullwhip phenomenon and the advancement of supply chain cooperation.
- Grasp the concept of CPFR and its role in collaborative planning and forecast replenishment.
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