Bullwhip Effect

Understanding bullwhip effect:

• A condition that occurs in the supply chain where customer demand is changing.
• These changes resulted in a series of effects that would disrupt the supply chain (Supply Chain).

Lack of coordination in the exchange informsi between retail, distributors, and companies can lead to bullwhip effect.

The cause of bullwhip effect:

1. new problems will occur when, for the sale of a reference period for the plan at a time when the future production.
2. And in fact, demand from customers continues to change. The uncertainty of customer demand which is the major cause of bullwhip effect.

Case Example: Causes bullwhip effect

P.T. Sinar Sosro Gresik Factory is a company that produces soft drinks industry Fruit Tea products Handheld. The instability resulted in product demand bullwhip effect. Companies must be able to make low cost with high service level. The focus of this study was to measure the bullwhip effect, identify the factors that cause the bullwhip effect, and propose solutions for bullwhip effect is reduced. Aggregation of data is based on the product / Sales Office (ω1), product (ω2), Sales Office (ω3), Echelon (ω4). Bullwhip effect is measured by the ratio between the coefficient of variation of demand that comes out of a channel (court) with a coefficient of variation requests received by the channel (Cin). Regression analysis was used to find the variables that contribute to the bullwhip efffect. Measuring bullwhip effect is based on the type of product (9 variants of flavor) and based on the type of packaging (packing a flavor, packaging three flavors). Measuring bullwhip effect based on the product yield value ω1 = 0.62, ω2 in upstream = 1.00 and at downstream = 1.44, ω3 = 0.63, and ω4 in the upstream and the downstream = 1.08 = 1.01. Measuring bullwhip effect based packaging value ω1 = 0.66, = 0.99 ω2 upstream and in downstream = 1.41, ω3 = 0.79, and ω4 in upstream = 0.96 and in dowmstream = 1.08. The results showed that the bullwhip effect happens in the supply chain caused by the distortion of information from downstream to upstream. From the calculation and analysis for the period January 2006 - December 2006 in case of reduction of the bullwhip effect is obtained by Rp.1.703.526.050 inventory cost savings, - and the sevice level increased from an average of 92.68% to 100%, so that profits will increase because not occur stockout cost of Rp.1.369.773.500, -Listen

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Customer Relationship Management

CRM (Customer Relationship Management), sometimes known as customer management, customer value management, customer centricity, and customer-centric management. The principles that have been established to effectively attract, serve and retain the best customers will see significant positive impact on bottom line profits. Deep relationships with customers, the more opportunities to sell products and services. However, with the advent of e-business and 'new economy', the challenge of building strong customer relationships have become larger.

The need to attract, acquire, leverage, and retain customers who are still a major concern for most companies. Storage and revenue growth through customer acquisition will remain a major need to compete successfully. Several studies document that the average company loses half its customers every 5 years and that cost five to ten times more likely to acquire new customers to keep existing.

Over the past few years, customer relationships are key to industrial growth in business. Industry must take absolute responsibility for customer satisfaction. This requires learning and tracking customer needs, behaviors, and lifestyle and use this information to create specific value propositions. This strategy is the path to consumer loyalty.

As performed by PT Gramedia Pustaka Utama, which is one major publisher in Indonesia. Established since 1974. They have published books of translation quality and the works of children of the nation, ranging from children's books, edutivity, to adult. Now they also publishes thousands of books each year, with various themes of fiction and nonfiction. Scholastic information services unlimited in print form.

They also provide services via the internet. Various information can we explore through a series of menus that are available here. we could listen to start from the profile companies, coverage of circulation, advertising rates, product profiles online and print media.

As the widespread use facebook in cyberspace, PT Gramedia Pustaka Utama utilize this tool as an approach to customer relations or often referred to as CRM. They opened an official page on Facebook. There they provide information about new books published, the price of books, synopsis of books, book launch events, and other information that are useful for book enthusiasts.

On that page, they also provide the opportunity for customers to share their advice or input. With the existence of this page, PT Gramedia Pustaka Utama will be closer to its customers and is very profitable for the company to serve and retain customers. Obviously this page is also useful for its loyal customers.

Review : IT Infrastructure : Hardware and Software

INFRASTRUCTURE COMPONENTS

1. Computer Hardware:
It includes equipment for gathering and inputting data , physical media for storing the data, and devices for delivering the processed information as output.
2. Computer Software:
It includes system software and application software. System software manages the resources and activities of the computer. Application software applies the computer to specific task for an end user.
3. Data Management Technology:
Data management software organizes, manages, and processes business data, concerned with inventory, customers, and vendors.
4. Networking and Telecommunications:
It provides, voice, and video connectivity to employees, customers, and suppliers.
5. Technology Services:
When business need to make major system changes or implement an entirely new IT infrastructure, they typically turn to external consultants to help system integration. These consultants ensure that new infrastructure works with the firm’s older, so called legacy systems.

COMPUTER HARDWARE

Types of Computer:
1. Personal Digital Assistant (PDA)
Now it combines cell phone and walkman, with an internet function and assistant function for operators.
2. Personal Computer (PC) and Workstation
Normally PC, desktop or laptop, is used by employees that work along or with a few people on
computer. For example, a design engineer uses a PC and a CAD to do product design.

3. Sever Computer
Server computer are specifically optimized to support a computer network, enabling users to share files, software, peripheral services, or other network resources.
4. Mainframe Computer
It is a large-capacity, high-performance computer that can process large amounts of data very rapidly. For instance, airline company use it to process upwards of 3000 reservation transactions per second.
5. Supercomputer
It is used for tasks requiring extremely rapid and complex calculations with thousands of variables, million of measurements, thousands of equations.
6. Grid Computer
It involves connecting geographically remote computers into a single network to create a “virtual supercomputer” by combing the computational power of all computers on the grid.


Storage, Input, and Output Technology:
1.Secondary Storage Technology
 Magnetic Disks
It is the most widely used secondary storage medium today. For example, PCs have hard drives, and large mainframe or midrange computer have multiple hard disk drives.
 Optical Discs (CD)
Optical discs use laser technology to store massive quantities of data in a highly compact form. It can store 660 to 700 megabytes.

2.Digital Video Discs (DVD)
DVDs are optical discs the same size as CD-ROMs but with more capacity. They can hold a minimum of 4.7 gigabytes.

3.Magnetic Tape
Magnetic Tape is an older storage technology that still is used for large quantities of data that is needed instantly.

4. Storage Networking
Storage area networks (SANs) connect multiple storage devices on a separate high-speed network dedicated to storage.

Computer Hardware Trends:
1. The integration of Computing and Telecommunications Platforms
Today the most dominant theme in hardware platform is the convergence of telecommunication and computing platforms. For instance, the Apple iPhone integrates a phone, digital camera, digital music player, and internet function.
2. Nanotechnology
Nanotechnology uses individual atoms and molecules to create computer chips and other devices that are thousands of times smaller than current technologies permit.
3. Edge Computing
A multitier, load-balancing scheme for Web- based applications. Edge computing is another technique like grid computing.
Three tiers:
→ the local client
→ the nearby edge computing platform
→ enterprise computers
4. Autonomic Computing
an industry-wide effort to develop systems that can configure themselves, optimize and tune themselves, heal themselves when broken, and protect themselves from outside intruders and self-destruction.
5. Virtualization and Multicore Processors
the process of presenting a set of computing resources so that they can all be accessed in ways that are not restricted by physical configuration or geographic location.

COMPUTER SOFTWARE

System Software

Operating system:
Computer system’s chief manager. Allocates and assigns system resources, schedules
the use of computer resources and computer jobs, and monitors computer system activities.

Computer language translation programs:
Convert programming languages into machine language that can be understood by the computer.

Utility programs:
Perform common processing tasks, such as copying, sorting, or computing a square root.

Application Software:
Programming Languages can be used to create programs that specify the behavior of a machine, to express algorithm precisely, or as a mode of human communication.

Software Packages and Desktop Productivity Tools:
Software package is a prewritten, precoded, commercially available set of programs that eliminates the need for individuals or organizations to write their own software
programs for certain functions. Most package software is application software.

Programming languages

Fourth-generation languages:
 Consist of a variety of software tools that enable end users to develop software applications with minimal or no technical assistance or that enhance professional programmers’ productivity.
 Nonprocedural
 Less procedural
 Natural languages
Software Trends

a. Open source Software
Developed by all people, used by all people, shard by all people.
Ubuntu– Linux-based, eg. OpenOffice and Firefox
b. Cloud Computing– Use internet to utilize S/W & data in remote data center eg. Google
Apps.
c. Mashups– Web 2.0, mix up of <2 online applications. d. Widget—samll S/W for Web pages or desktop, eg Google Desktop Gadgets

MANAGING HARDWARE AND SOFTWARE TECHNOLOGY

Capacity Planning and Scalability
 Large process and storage resources are needed for e-commerce and e-business.

 Capacity Planning is the process of predicting when a computer hardware system
becomes saturated, including:
1)maximum number of users at one time
2)impact of existing and future software applications
3)performance measures (i.e. min. response time, processing)

Scalability is the ability of a computer, product, or system to expand to serve a large number of users without breaking down.

E-commerce and e-business both need scalable IT infrastructures that can grow with the business.

Organizations must ensure they have enough computer processing, storage, and network
Resources.