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Promotions and promotion horizon. You. How much inventory do you need ?. How much inventory do you need ? □ nothing □ a little bit □ enough. 4 days leadtime. Wants a delivery in 1 week. ?. customer. supplier. You. Promotions in The Fresh Connection.
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Promotions and promotion horizon
You How muchinventory do youneed? How much inventory do you need ? • □ nothing • □ a little bit • □ enough 4 daysleadtime Wants a delivery in 1 week ? customer supplier
You Promotions in The Fresh Connection How does this relate to promotions in the game? Fixedperiod of x weeks Promotion horizon of y weeks ? customer production
Promotion effect - implications for the supply chain • Supply Chain must first increase and afterwards decrease output to keep synchronised with sales. • Part of the additional sales is only a shift in time. • Promotion pressure and horizon is important P Additional sales Forward buying or cannibalisation D Promotion peak Baseline Promotion low