Wednesday, April 2, 2008

Chapter 3 Senge (Beer Game)

Did anyone else that it would be common sense not to panic when you run out and that if your orders run 4 wks behind, what is the point of upping your order every week?
If your orders are behind that many weeks, has it accrued to anyone to pick up a phone and call to see if you could possibly get any extra on the next shipment? It seems to me that it would make more sense to pick up the phone instead of upping your order that could be up to 8 weeks away.

Anyone else have any thoughts?

2 comments:

htrang said...

It might be possible for small business to order things by phone. Because they will able to keep track with the orders and who placed the order. However, a big company with hundreds of employees, it seems impossible to know who is doing what if everything is not documented. That's why that employees need a purchase order to place big amount order and credit for small order.

kellpw01 said...

I definitely agree that no one in their right mind would continue to exponentially order items because they are delayed. Obviously this was an exaggerated case. This definitely shows how the lack of communication can hurt not only the business that is ordering, but also the suppliers of the product and the suppliers' suppliers as well. It all comes down to the fact that communication is immeasurably important in business not only in complex tasks, but to routine tasks as well.