What Is Bullwhip Effect?

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Issue:

Business

 

Written by:

Lisa A

 

Date added:

March 14, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1142

 

Was viewed:

10083 times

 

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Essay content:

The order is placed to fulfill the current demand and also keeping in mind any unpredictable sale, which is the safety stock. The manager next in the supply chain orders from his suppliers based on the same fundamentals and with every level the order varies exponentially, resulting in the bullwhip effect...
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Because the amount of safety stock contributes to this effect it is consequential that when the lead times between the resupply of the inventory along the supply chain is longer the fluctuation in the demand is higher. Order batching Companies order from their suppliers usually either at regular intervals or on an on demand basis which is periodic or push ordering...
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