Bullwhip Effect (Supply Chain)
Information distortion in supply chains where small fluctuations in retail demand cause larger fluctuations at the wholesale, distributor, and manufacturer levels.
v1.0.00 variables4 edgesOpenCM 1.0
Common Uses
- Explaining demand amplification upstream in a supply chain
- Designing order-smoothing policies with suppliers
- Forecasting safety-stock at each echelon
- Teaching supply-chain dynamics in an MBA course
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