Bullwhip Effect 🐂 | Opexity

What is Bullwhip? 🐂
The name itself doesn't say much, does it?

The Bullwhip Effect is often called a Whiplash Effect or Whipsaw Effect. It involves the amplified transmission of changes in demand along the supply chain. ⛓️ Relatively small deviations in demand reported by final customers increase as demand information is passed up the chain to the manufacturer and on to suppliers.

The information flowing through the supply chain 🚛 in the form of orders does not actually reflect changes in demand in the retail market, but instead contains a series of inventory decisions by managers.

Orders placed 📦 with the supplier include items needed to replenish cyclical and safety stocks to a level that guarantees future demand.

Learn about the causes of the Bullwhip Effect and its reduction methods in the Logistics course available here:
➡️ https://www.opexity.com/courses/logis...

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