Framework
Four causes of the bullwhip effect
The question it answers
A manufacturer's supply planner sees distributors' orders swinging far more than retail sales: why does the distortion grow with every step up the chain?
- Origin
- Lee, Padmanabhan and Whang, 1997; Chopra, 2019, ch. 10
- Diagram type
- Hub diagram
- Level of analysis
- Industry
Diagram
Four causes of the bullwhip effect
Bullwhip effect
Demand-signal processing
Order batching
Price fluctuation
Rationing and shortage gaming
Pitfalls
Pitfall
Curing it only with "better forecasts"; in practice retail data sharing and changes to pricing and batching are needed.
Sources
References
Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.
- Chopra, S. (2019) Supply chain management: strategy, planning, and operation (7th global edn). Harlow: Pearson.No DOIpearson.comCited in 4 articles
- Lee, H.L., Padmanabhan, V. and Whang, S. (1997) ‘Information distortion in a supply chain: the bullwhip effect’, Management Science, 43(4), pp. 546–558.doi:10.1287/mnsc.43.4.546Cited in 1 article