1. Demand (Mis-)Management at Campbell’s Soup
Dr. Ron Lembke

2. Soup Consumption When do you drink chicken noodle soup?
When you’re sick
When do people get sick?
In the winter

3. Soup Consumption

4. What would you do?
How would you react to that demand?

5. Soup Shipments

6. 11/17/99

7. Benefits Campbell’s Benefits Retailer 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

8. 2/17/00

9. Heinz’ Efforts
Aug. 1996