The pandemic has spotlighted several issues in the food supply chain.
The hallmark of a good supply chain is to plan on disruptions and build in redundancies in the network. The current spike in demand could lead grocery stores to increase capacity that may not be needed when the pandemic ends. Without careful management and communication, it’s a potential example of the bullwhip effect.
In addition, the health of farm workers upstream in the supply chain is a major concern, the longer the pandemic lasts.
- Despite empty store shelves, grocery association says supply chain ‘very strong’ (Mar 19, 2020, PBS NewsHour)
- Grocery store suppliers scramble to keep up with supplies (Mar 17, 2020, CNBC Television)
This post is based on the CNN article, How grocery stores restock shelves in the age of coronavirus, by Danielle Wiener-Bronner, March 20, 2020, and the YouTube videos in the Spotlight. Image source: Getty Images/iStockphoto.
1. How would you mitigate the bullwhip effect for paper towels?
Guidance: This is a good time to review the bullwhip effect. Students likely have been to a grocery store where certain items may Continue reading