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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Don Lloyd who wrote (44661)7/18/2001 4:27:34 PM
From: Stock Farmer  Read Replies (1) of 54805
 
Don - good point too.

Management of businesses looked at the inrushing, booming customer orders and reacted to fill it.

Looking at a part of a system one gets trapped into situations that appear in retrospect to be both avoidable and ill advised. Those who sit analyzing with the all seeing retrospectroscope are often quick to criticize. When the sad truth is that most folks would duplicate the same results if placed in the same situation.

I recall reading somewhere some time ago in my never-ending training about a supply-chain-management game. Had to do with a new beer, a supermarket, a distribution warehouse and a brewery. Various time lags between order and fulfilment.

Apparently, when actual business managers were confronted with the game in roles as supermarket owner, warehouse owner and brewery owner, (and rational consumer behavior) group after group after group ended up with huge inventories of excess beer in the supermarket, the warehouse and the brewery!

If anyone knows of the reference I am citing, please post to the thread. I've been looking to drag it up again. I seem to recall the entire book was worthwhile.

John
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