Effects of Demand Amplification in Supply Chain Management

Abstract

Supply Chain Management has become part and parcel of every successful organization. However, with its importance in today’s market, we also need to understand the implications and problems attached with it. One of the major problem faced in supply chain management is Demand Amplification. Demand Amplification is caused by demand variability and hence results in excessive stocks and high cost. The thesis initially looks deeply into various steps involved in supply chain management and then various causes of demand amplification. Furthermore, the thesis investigates different measures for reducing demand amplification thus providing ample opportunity for managers to overcome this problem. In the first chapter I have discussed in detail what supply chain management is. In preceding chapters I have highlighted the problems of demand amplification and in the end of this thesis various remedial measures have been discussed. Emphasis has been given to three approaches namely information sharing, channel alignment and operational efficiency for reduction of demand amplification.