According to current globalised business world, logistics have planted their root strongly in the

trade market. The fact is that many retail companies in tourism industry mainly depend on the
tourists, those who are staying around, incentive travel visitors and business visitors. Yet still our
company faces the challenges in gaining revenue due to certain governmental changes in tourism
industry. The challenges are as below:Inappropriate coordination fluctuates the transport requirements such as cost due to surplus
capacity that is needed to be maintained to match periods of high demand (Chopra &Meindl,
2012). For example, the Malaysia government now imposes the rules to increase the ticket
pricing in transportation cost such as flight and buses. This affects the number of tourist to our
country. Not only affecting the tourism industry, as my company in retail industry, could not be
able to sell off the packaged foodstuffs and handicrafts ordered. This causes a loss of revenue to
the company.

According to (Mangan, Chandra, & Butcher 2008) the challenges of coordination related to the
bullwhip effect raise the cost of inventory with the supply chain. As the demand variability
occurs, in travel industry had an increase in the carriage of inventory for foodstuffs and
handicraft that relatively incurred warehousing cost (Wing, 2010). Thus Suttle and Seawind
faced a problem in inventory cost in order to place the handicrafts ordered in bulk to store in safe
place. For example, in Malaysia NS company is a retailer in tourism industry that sells packaged
foodstuffs. They always order the foods in bulk and store it in inventories. Hence, they also face
the problem of paying off the inventory cost due to fewer sales.

The increase in manufacturing cost of foodstuffs and handicrafts caused by the bullwhip effect
will force the factory and its suppliers to try and meet up with streams of orders that counterfeits
with the demand of customers, which per cost unit that is to be manufactured will increase.
Therefore, Suttle and Seawind faced a problem in buying the bulks as the manufacturing cost
increase. This is due to less revenue in the company due to problems of tourism industry.

When there is an increase in variability due to the bullwhip effect it will make scheduling
difficult for both the factory and its suppliers as observed in Suttle and Seawind in travel
industry where capacity cannot meet the actual amount of incoming orders that results in an
increase in replenishment leads times within the travel industry supply chain (Wing, 2010).
Suttle and Seawind encounter the challenges that are related to level of product availability
that makes the firm to stock out and in return making it harder to supply within the system that
results in a lost for all participants in the chain. Hence these are challenges faced by Suttle and
Seawind company in tourism industry.
Suttle and Seawind should look into both the process of manufacturing and distribution so as
to be able to identify the echelons in which demand are being placed so as to know if to calculate
for safety stock at the echelon or the requirement of multi-echelon optimization is needed
(Aberdeen group, 2008).
For example, Cocoa Mart in Malaysia utilizes a multi-echelon approach through network
distribution with multiple tiers that comprises a centralized warehousing under the internal
control of Cocoa Mart. Thus, enables the eradication of overdependence on placed demand from
an immediate downstream customer.
For example, Suttle and Seawind retailer company should use qualitative forecasting to
improve potential forecast that enable its leverage distributional forecast in the determination of
maximum quantity of initial shipments which translate to additional profits in millions (Andres,
2011).
According to (Chopra &Meindl, 2012) the key of replenishment comes from the retailers angle
where the end users make their final purchase. Implementing a single stage according to these
authors will control the decision of replenishment which will eliminate the issues of multiple
coordination and forecast. For example as noted by (Kapuscinski et al. 2004) Saigon Enterprise
in Malaysia sells out handicrafts to its customers directly which automatically control
replenishment due to the absence of intermediaries which reduces replenishment in lead times.

Hence in Malaysia, retail companies in travel industry should also implement a single stage
control in order to eliminate the multiple coordination.
The use of will help eliminate forward promotions and in turn gain the ability to match supply
with demand also the promotions based on sell through should be utilized so as to reduce the
bullwhip effect because when there is prcised information system there will be facilitation in the
tying of direct promotions to customers sales. Due to this method the end distributor which is
the retailer will only place high order when they know they can sell more (Mangan, Chandra, &
Butcher 2008). For example, Saigon Enterprise in Malaysia also makes use of the EDLP to
reduce the bullwhip effect through the removal of unnecessary sales promotion that has
eliminated retailers forward buying enabling supply-demand matching. Hence, as a retailer in
travel industry Suttle and Seawind should stabilize the price of foodstuff packages so that all
range of customers would afford to purchase it.
The coordination of decisions in a logistic firm should be ensured that function objective is
implemented to evaluate decision making is in accordance to the overall objectives of the firm
such as inventory, transportation and food packaging that could affect the firms profitability.
This way the firm is able to avoid decisions that focus only on the reducing inventory and the
overall cost of the supply chain (Chopra & Meindl, 2012).
For example automotive manufacturers in the U.S antagonizes their vendors through the demand
of automatic price reductions on an annual basis based on this mutual agreement on the
alignment of partnership incentives, the fate of the SC is interlinked enabling efficient delivery of
automotive products to end users, making them all a winner (Huang et al. 2011). Therefore
Suttle and Seawind in travel industry could implement the aligning incentive method in order
to manage the inventory in food packaging and also handicrafts to produce more profit.