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bullwhip effect

ppt on bullwhip effects by Ankit walia

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bullwhip effect

  1. 1. Bullwhip Effect Presented by- ANKIT WALIA
  2. 2. Evolution of Supply Chain
  3. 3. Bullwhip Effect • Amplification of variation as we move towards the upstream side of the supply chain is called a Bullwhip Effect or Whiplash Effect. • Variation of stocks and orders increases up the supply chain from customer to supplier. •  The longer lead times of information and material are, the stronger the effect is.
  4. 4. Amount Of Order Variability
  5. 5. Major reasons for the Bullwhip Effect 1. The inaccurate forecasts of demand called “demand signal processing”. 2. “Hoardings and rationing game”. 3. The ordering policy used by retailers called “order batching”. 4. Discounts and seasonal price variations 5. It is inherent in the System
  6. 6. Possible Remedies 1. Reducing Uncertainty 2. Reducing Variability 3. Lead Time Reduction 4. Strategic Partnering and Buying 5. Advanced Information Technology
  7. 7. Conclusion
  8. 8. THANK YOU 08/12/14 9
  9. 9. QUESTIONS???