Download - Demand ( Mis -)Management at Campbell’s Soup
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Demand (Mis-)Management at
Campbell’s SoupDr. Ron Lembke
Soup Consumption• When do you drink chicken noodle
soup?– When you’re sick
• When do people get sick?– In the winter
Soup Consumption
What would you do?• How would you react to that
demand?
Soup Shipments
11/17/99
Benefits• Campbell’s Benefits
– 15% Sales increase– 6% transportation cost reduction– 30% less sales staff labor time– Less order variation- no forward buys
• Retailer Benefits– Inventories cut in half– Stockouts from 1.5% to 0.3%– Lower order processing costs
2/17/00
Heinz’ Efforts• Aug. 1996