The Value of Information Xiaohong Pang Automation Department Shanghai Jiaotong University
The Value of Information Xiaohong Pang Automation Department Shanghai Jiaotong University
Lecture Outline Introduction ■The Bullwhip Effect ■Effective Forecasts Information for the Coordination of Systems Locating Desired Products Lead time reduction Integrating the Supply Chain
Lecture Outline Introduction The Bullwhip Effect Effective Forecasts Information for the Coordination of Systems Locating Desired Products Lead time reduction Integrating the Supply Chain
Today 's Topic What is the Bullwhip Effect? What are the main factors contributing to the Bullwhip Effect?
Today ’s Topic What is the Bullwhip Effect? What are the main factors contributing to the Bullwhip Effect?
Value of Information "In modern supply chains,information replaces inventory Why is this true? ■Why is this false? Information is always better than no information. Inventory levels Why? Orders Production Delivery Status
Value of Information “In modern supply chains, information replaces inventory” Why is this true? Why is this false? Information is always better than no information. Why? Production Delivery Status Inventory levels Orders
Value of Information Information Helps reduce variability Helps improve forecasts Enables coordination of systems and strategies Improves customer service Enables firms to react more quickly to changing market conditions. Facilitates lead time reductions
Value of Information Information Helps reduce variability Helps improve forecasts Enables coordination of systems and strategies Improves customer service Enables firms to react more quickly to changing market conditions. Facilitates lead time reductions