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| Topic: |
Philosophy
|
| Number of pages / Number of words: |
2 / 537 |
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Using ABC system help to recognize the excessive cost, hence ABC system help companies implement EDLP(everyday low price) strategy
4. Eliminate Gaming in Shortage Situations: Allocate in proportion to past sales record than based on orders make customers have no incentive to exaggerate their orders...
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Other way is work with customers to place order in advance of the sales season this help to adjust the production capacity and scheduling. Enforce more stringent cancelation policies also help so retailer will not continue to exaggerate their needs and cancel orders.
In Conclusion, Companies can effectively counteract the effect by thoroughly understanding its underlying causes...
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bullwhip effect
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