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Demand ( Mis -)Management at Campbell’s Soup PowerPoint Presentation
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Demand ( Mis -)Management at Campbell’s Soup

Demand ( Mis -)Management at Campbell’s Soup

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Demand ( Mis -)Management at Campbell’s Soup

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  1. Demand (Mis-)Management at Campbell’s Soup Dr. Ron Lembke

  2. Soup Consumption • When do you drink chicken noodle soup? • When you’re sick • When do people get sick? • In the winter

  3. Soup Consumption

  4. What would you do? • How would you react to that demand?

  5. Soup Shipments

  6. 11/17/99

  7. Benefits • Campbell’s Benefits • 15% Sales increase • 6% transportation cost reduction • 30% less sales staff labor time • Less order variation- no forward buys • Retailer Benefits • Inventories cut in half • Stockouts from 1.5% to 0.3% • Lower order processing costs

  8. 2/17/00

  9. Heinz’ Efforts • Aug. 1996