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About The Bullwhip Effect in HPs Supply Chain
The document discusses the bullwhip effect in supply chains. The bullwhip effect causes demand and inventory levels to fluctuate more at each step up the supply chain, distorting the actual end customer demand. Procter & Gamble first coined the term when observing fluctuating diaper order levels. The document also discusses Hewlett-Packard observing this effect in their printer supply chain. Four major causes of the bullwhip effect are identified: demand forecast updating between supply chain members, order batching policies, price fluctuations incentivizing over-ordering, and shortage gaming behaviors. Understanding these causes can help design strategies to mitigate the bullwhip effect and its associated inefficiencies.
Detailed Information
| Author: | ['soulhudson'] |
|---|---|
| Publication Year: | 2015 |
| Pages: | 9 |
| Language: | English |
| Format: | |
| Price: | FREE |
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