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The Bullwhip effect is often used to describe the magnification of demand variability due to distorted information through the supply chain. A classic example of this was during the “dotcom” bust of 2000 when demand variability for broadband equipment was magnified several fold as information was transmitted through the supply chain. The end result was that several companies were planning for unrealistic demand, and many companies shut down when this demand failed to materialize.
Using valid Internet sites, research a company that is actively using Enterprise Resource Planning (ERP) and Materials Resource Planning (MRP) systems to manage its processes, resources, and operations. You can choose a technology company that has survived the dotcom era or any other company that has lived through a very rapid change in demand forecasting such as what occurred as a result of the fiscal meltdown and the liquidity crisis in 2008.
Based on your research, respond to the following:
Analyze some of the processes that the company has put in place to plan for sudden and drastic changes in demand.
Evaluate the success of the initiatives and analyze the reason for the result.
Based on the lessons learned, what else could the company do to plan for future disruptions?
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