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Demand ( Mis -)Management at Campbell’s Soup. Dr. 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. - PowerPoint PPT Presentation
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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
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