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English: Bullwhip effect

Bullwhip effect (or whiplash effect, or Forrester effect) – the phenomena in supply chains of “amplification of demand variability from a downstream site to am upstream site” [1]. In other words, demand variability increases as we move away from the real source along the supply chain. The “distance” might be the number or supply chain members in particular supply chain; or production lead time.


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Bullwhip Effect in Different Industries

Bullwhip Effect Simulation (Beer Game)

Bullwhip Effect Counter Measures

References

  1. Lee, H.L., Padmanabhan V. and Whang S. (1997) Information distortion in a supply chain: The bullwhip effect, Management Science; Apr 1997; 43, 4; pg. 546
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