The Bullwhip effect or the Forrester effect is the unexpected or unpredicted demand distortion that travels upstream in the supply chain. The customer holds the whip, gives it a crack and the ripples are felt all along the supply chain right back to the manufacturer. As the whip moves away from the source, i. Forecasting accuracy decreases as we move upstream along the supply chain. Even some consumer goods that have fairly consistent consumption at the retail fall victim to this effect. There may be six or more inventory points between the customer and the raw material supplier.

Author:Goltishicage Kagami
Language:English (Spanish)
Published (Last):9 September 2015
PDF File Size:13.25 Mb
ePub File Size:15.41 Mb
Price:Free* [*Free Regsitration Required]

Consider a series of companies in a supply chain, each of whom orders from its immediate upstream member. In this setting, inbound orders from a downstream member serve as a valuable informational input to upstream production and inventory decisions.

Actions that can be taken to mitigate the detrimental impact of this distortion are also discussed. Authors: Hau L. Lee , V. Padmanabhan , Seungjin Whang Hau L. Padmanabhan , Seungjin Whang. Search Search. Volume 66, Issue 5 May Volume 66, Issue 4 April Volume 66, Issue 3 March Volume 66, Issue 2 February Volume 66, Issue 1 January View PDF. Go to Section. Home Management Science Vol. Hau L. Seungjin Whang. Previous Back to Top. Figures References Related Information Cited By Data driven supply allocation to individual customers considering forecast bias.

Investigations into control strategies of supply chain planning models: a case study. Modeling the enablers of supply chain strategies and information technology: improving performance through TISM approach.

Would you like some wine? Introducing variants to the beer game. Blockchain-based agri-food supply chain management: case study in China. Internet-of-things enabled supply chain planning and coordination with big data services: Certain theoretic implications. Leagile supply chain: design drivers and business performance implications.

A study of factors affecting supply chain performance. Bullwhip effect in pricing under different supply chain game structures. Stochastic supply chain, transportation models: implementations and benefits. Multiple supply chain adoption under uncertainty. Oded Berman , Mohammad M. Fazel-Zarandi , Dmitry Krass. Configuration lifecycle management maturity model. An empirical investigation of transaction dynamics in online surplus networks: A complex adaptive system perspective.

Support vector regression and Adaptive neuro fuzzy to measure the Bullwhip effect in supply chain. Impact of big data on supply chain management. Multiple order-up-to policy for mitigating bullwhip effect in supply chain network. Optimal pricing decisions for a closed-loop supply chain with retail competition under fuzziness.

Using a systems engineering framework for additive manufacturing. A study on information sharing mechanism for an opto-electronic company. Brand positioning and consumer taste information. Revealing instabilities in a generalized triadic supply network: A bifurcation analysis. Will cloud computing make the Information Technology IT department obsolete? The impact of total quality management and supply chain integration on firm performance of container shipping companies in Singapore.

Risks and performance in supply chain: the push effect. Business cycle research in marketing: a review and research agenda. Price Setting on a Network. Differences in adoption of global spare parts management in autonomous service units. Exploring inventory order policies impact under the non-negative constraint of order quantity: System stability, service level, and cost.

Think exogenous to excel: alternative supply chain data to improve transparency and decisions. Economic model predictive inventory routing and control.

Upstream information distortion in the agro-food supply chain. Variability propagation in the production planning and control mechanism of construction projects. Inventory management models in cluster supply chains based on system dynamics.

Decentralized production—distribution planning in multi-echelon supply chain network using intelligent agents. The influence of supply chain integration on operational performance. Developing visibility to mitigate supplier risk: the role of power-dependence structure.

Challenges and opportunities of Turkish food retail in Germany from a value chain perspective. Mercedes Esteban-Bravo , Jose M. Supply chain integration strategies in fast evolving industries. A multiple-retailer replenishment model under VMI: Accounting for the retailer heterogeneity. The impact of point-of-sale data in demand planning in the South African clothing retail industry. An intelligent physarum solver for supply chain network design under profit maximization and oligopolistic competition.

Design considerations for multi-stakeholder display analytics. Exploiting the potential of manufacturing network embeddedness. A robust supply chain planning framework for revenue management in the semiconductor industry. Available-To-Promise systems in the semiconductor industry: A review of contributions and a preliminary experiment. Inventory Theory. The bullwhip effect in a 3-stage supply chain considering multiple retailers using a moving average method for demand forecasting.

An analytical model for system-wide and tier-specific assessment of resilience to supply chain risks. An empirical investigation of the antecedents of partnering capability. Demand uncertainty and inventory turnover performance. Supply chain risk management in India — practical insights. Exploring the Shopper Service Ecosystem.

Towards a grounded view of collaboration in Indian agri-food supply chains. Bullwhip effect and supply chain costs with low- and high-quality information on inventory shrinkage. Suppliers' communication capability and external green integration for green and financial performance in Korean construction industry. Design of supply chain topology to mitigate demand and supply risks.

The impact of the supply chain structure on bullwhip effect. Quantitative models for managing supply chain risks: A review. Bounded growth of the bullwhip effect under a class of nonlinear ordering policies. Establishing brand equity among business-to-business referral sources in the emerging markets: The case of specialty medical practice. Propuesta de abastecimiento de medicamentos coordinando multiniveles de demanda.

Un caso ilustrativo chileno. The impact of market uncertainty on collaboration with suppliers and operational performance. Fuzzy time series forecasting for supply chain disruptions. Mitigation of the bullwhip effect considering trust and collaboration in supply chain management: a literature review.

On returns and network configuration in supply chain dynamics. Can intrafirm IT skills benefit interfirm integration and performance?

Project performance indicators of engineering design groups: Evaluation and proposed improvement. Demand chain management: Relationships between external antecedents, web-based integration and service innovation performance. On stabilizing volatile product returns. The impact of IT on supply chain agility and firm performance: An empirical investigation. A generalized measure of bullwhip effect in supply chain with ARMA demand process under various replenishment policies. Modeling and analysis of cash-flow bullwhip in supply chain.

The impact of supply-side electronic integration on customer service performance. Supply chain integration framework using literature review. Internal liquidity risk, financial bullwhip effects, and corporate bond yield spreads: Supply chain perspectives.


Information Distortion in a Supply Chain: The Bullwhip Effect



Distortion in the supply chain – beware the Bullwhip effect




Related Articles