Archive for the ‘Bullwhip effect’ Category

Bullwhip Effect

May 26, 2010

Demand changes increases as one step up the supply chain away from the retail customer. Small changes in consumer demand can result in large variations in orders placed upstream. The network can oscillate in very large swings as each organization in the supply chain seeks to solve the problem from its own perspective. This phenomen si calles bullwhip effect.

(more…)

Advertisements