Download
1 / 6
60 likes | 151 Views
Understand the impact of promotions and promotion horizon on inventory management for a synchronized supply chain. Discover how to determine the right inventory levels needed based on customer demand and supplier lead times. Learn the effects of promotions on production and sales, including implications such as forward buying and cannibalization. Explore the relationship between promotions in The Fresh Connection game and real-world supply chain strategies to maximize profits. Gain insights into fixed promotional periods, peak and low points, and how to adjust output efficiently to meet demand fluctuations. Stay ahead by anticipating additional sales during promotions and adapting your supply chain effectively.
E N D
Promotions and promotion horizon
You How muchinventory do youneed? How much inventory do you need ? • □ nothing • □ a little bit • □ enough 4 daysleadtime Wants a delivery in 1 week ? customer supplier
You Promotions in The Fresh Connection How does this relate to promotions in the game? Fixedperiod of x weeks Promotion horizon of y weeks ? customer production
Promotion effect - implications for the supply chain • Supply Chain must first increase and afterwards decrease output to keep synchronised with sales. • Part of the additional sales is only a shift in time. • Promotion pressure and horizon is important P Additional sales Forward buying or cannibalisation D Promotion peak Baseline Promotion low
