Demand forecast updating bullwhip
Growing level of inventory, lack of communication, disorganization, delay in order decisions might just be a result of the dreaded ‘Bullwhip Effect’ in your supply chain.
As a member, you'll also get unlimited access to over 55,000 lessons in math, English, science, history, and more.
We use the term 'bullwhip' because the oscillation in demand builds up the chain, like the oscillations in a whip that is cracked tends to grow larger as the force is moved down to its tip.Then, after inventory is produced and expedited through the supply chain, the next sound is nothing but silence as most supply chain participants have no orders and nothing to do.The globalization of supply chains has not allowed many organizations to improve overall cycle times.In recent years in the supply chain management theory there has been done a lot of research over the phenomenon called the Bullwhip effect In brief, this negative effect occurs when 'the demand order variabilities in the supply chain are amplified as they moved up the supply chain' (Lee et.al, 1997a) and can lead to such big inefficiencies as lost revenues and poor customer service.
Search for demand forecast updating bullwhip:
Plus, get practice tests, quizzes, and personalized coaching to help you succeed.