AT&T 1:42 AM Close THEBULLWHIP EFFECTIN1 PDF 1.6 MB The Bullwhip Effect in Suppl
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AT&T 1:42 AM Close THEBULLWHIP EFFECTIN1 PDF 1.6 MB The Bullwhip Effect in Supply Chains Haul. Ice* V. Padtmanabhan * Seungin Whang Distorted infonnation front one end ofa supply chain to the other can, lead to tremendons inefficiencies excessive innentory investmeut, poor eustomer service, lost revenues minguided capacity plans, inefectie transportation, and missed production schedules. How do exaggerated order swings occur Whatngment. The commof such can comipanies do to mitigate thew? ocat insuallicin o ive paciis pooru oot time. Howevex, when eumímdthK 01m from the roelles, dhey obnerved much bigger swings from elhe printer ivnto compony's d Whatppeswe spply chain is plagaed with their spri, theyscoced hut he od a bulwlip iect dat dio its demand information the bution channd sags. HP had to dy on the sales or- Gamble (P&cG) examined the osder pat s and high cos for corrections, sach as for ope ems for one of odd shigmenns and orimg. HP's prod diviin tives wete srprised by the deroe of variabilit: Whemthea fow yeans, the ifficien Consumer Re they kxknd at P&G'sonders of mari tothor sap sporw EXR) initiative has med "edine how the plets, such as 3M, they 0ored dur the swings wte even greatet, As fin glance, the varians did for hnitine was the oxcessive amount of invento not make sesG While the consumem, in this cassihe supply chain Various indusery sudies found he babis, consumed diapers an a scadya the deht e tocal sapply chain, from when prodacts la madonder variabilibies in the supply chain were am- he manacnuens peoduction lns to wihen they a plifiod as thay moved up the supply chain P&G riveon the netailkens shelves, uas mone than 100 days of called this phonomenon dhe "bullwhip offect an he sales of one of is prinnos at a major soud Email SaveExplanation / Answer
The Bullwhip Effect:
An unmanaged supply chain is not inherently stable. Demand variability increases as one moves up the supply chain away from the retail customer, and small changes in the consumer demand can result in large variations in orders planed upstream. Eventually, the network can oscillate in very large swings as each organization in the supply chain seeks t solve the problem from its own perspective. This phenomenon is known as the bullwhip effect and has been observed across most industries, resulting in increased cost and poorer service. Tremendous variability in orders along the supply chain can plague companies trying to eliminate excess inventory, forecast product demand, and simply make their supply chain more efficient.
The reasons of Bullwhip effect:
The main surprises coming out of the articles are
The ways in which companies can counteract the bullwhip effect: