An organization will always be ups and downs. It is necessary that the managers of the organization to keep track of the market conditions and analyze the changes. You need decisions on the organization to the demands of the market needs. If not, may adversely affect the functioning of the organization, resulting in lack of coordination and trust between supply chain members.
The changes may impact the information and can lead to a strengthening of demand> Supply Chain. The bullwhip effect is the uncertainty caused by distorted information to flow up and down the supply chain. This will affect almost all industries, a risk for companies that experience large fluctuations in demand. And even those companies that are dependent on suppliers, distributors and dealers.
A bullwhip effect can occur because the --
Increase the throughput of the project will increase the variability ofDemand
Increase in stocks on stock to accommodate the growing demand from the complicated requirements models and forecasting techniques
Reduction in service levels in the organization
Misallocation of resources
Higher transport against
How can we prevent it?
Bullwhip effect can be avoided by one or more of the following measures --
Avoid multiple demand forecast
Breading the individual contracts in several batchesOrders
Stabilize prices, prevent the risk of overgrazing by maintaining an adequate inventory involved
Reduce the variability and uncertainty in Lack-of-sale (POS) and shaving information
Reduce the lead time in the phases of the project
Keep the analysis of figures from the past and pursue current and future levels of requirements
Improve operational efficiency and outsourcing of logistics to location and efficient agency
On the bullwhip effect is theMB0028 theory of MBA from Sikkim Manipal University. It is a question of MBA assignments. Bullwhip effect prevention theory was introduced in the award.
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