Orange juice to the rescue?

Orange juice to the rescue?

Worried about the flu? Drink orange juice.

Concern about the flu is being attributed to the 0.9% increase in orange juice sales in January.

This OJ increase is the first in nearly five years.  Sales have declined by about 50% since 2001, because the general public has shied away from drinks and juices in general to cut sugar and calories from their diets.

The perception of drinking orange juice to protect from the worst flu season in years is apparently strong enough to boost demand, despite the lack of scientific evidence to support the juice’s flu prevention benefit.

This post is based on the Business Insider article, Terrified Americans are rushing out to buy orange juice after abandoning the drink for years, by Kate Taylor, February 9, 2018.  Image source: Shutterstock / Vanatchanan.

Discussion Questions
1. How can the sudden surge in demand of orange juice be managed effectively?

Guidance: Since juice is based on agricultural production, it may require the length of a growing season to react to the increased demand. For orange juice producers, successful sales and operations planning is needed to balance anticipated demand with production (using an intermediate-range aggregate plan). In Continue reading

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Ramping Up for Bargain Days

Ramping Up for Bargain Days

November 20, 2017

Article Title: What impact are bargain days having on peak planning and supply chain?

Author of Article: Andrew Tavener

Date of article: November 10, 2017

Source URL: http://www.supplychaindigital.com/scm/what-impact-are-bargain-days-having-peak-planning-and-supply-chain

Supply chains have to deal with the growing impact of ‘bargain days’ on inventory management and logistics delivery.  Instead of traditional peak demand seasons, firms are increasingly experiencing peak demand year round due to marketing promotions.

Discussion Questions
1. How can the bullwhip effect be controlled when dealing with a responsive supply chain that includes forward buying as a major issue?

Guidance: Review the differences between an efficient and responsive supply chain; review the bullwhip effect. Students should be asked to outline the steps to take to minimize the bullwhip effect. The discussion should include the use of technology to track inventory and plan ahead with collaborative forecasting.

2. What difference will dependent versus independent demand have on the inventory required for peak planning periods in a responsive supply chain?

Guidance: Review dependent and independent demand for inventory. Ask students to argue for and against the Q-model and the P-model in regards to the different types of demand. Which model is best suited for peak demand? Continue reading

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