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The Causes of the Bullwhip Effect in A Pharmaceutical Supply Chain of PT. X

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The bullwhip effect is the phenomenon of increasing demand variability in the supply chain as one moves from the downstream (the retailer) to the upstream (manufacturer). The objective of this study is to address the occurrence of Bullwhip Effect in Pharmaceutical Supply Chain of PT.X, and find out the highest cost impact from four causes of Bullwhip Effect, Demand and Forecast updating, Order Batching, Rationing and Shortage Gaming and Price Fluctuation. Bullwhip effect occurs in the pharmaceutical supply chain of PT.X, the caused was come from Demand and Forecast updating and Rationing and Shortage Gaming. Even though the evidence exist that known causes of the bullwhip effect in the demand and forecast updating,however, by having the Material Requirement Planning implemented, the impact of the bullwhip effect was reduce or minimize. Another finding in this study, thev allowed deviation between sales and forecast of 20% below or above the targetedforecast gives an exponential impact in the Material Requirement Planning in producing the Finished goods with the sales forecast required by marketing pharmaceutical department of PT.X.

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Availability

M00139

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Available

Detail Information

Series Title

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Call Number

139

Publisher

: Swiss German University., 2008

Collation

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Language

English

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Subject(s)

MBA

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