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| Author: | Chen, F. (et al.) |
| Title: | Quantifying the bullwhip effect in a simple supply chain: The impact of forecasting, lead times, and information |
| Journal: | Management Science
2000 : MAR, VOL. 46:3, p. 436-443 |
| Index terms: | Forecasting Inventory control Management science Models |
| Freeterms: | Supply chains |
| Language: | eng |
| Abstract: | An important observation in supply chain management, known as the bullwhip effect, suggests that demand variability increases as one moves up a supply chain. This effect is quantified for simple, 2-stage supply chains consisting of a single retailer and a single manufacturer. The model includes 2 of the factors commonly assumed to cause the bullwhip effect: demand forecasting and order lead times. These results are extended to multiple-stage supply chains with and without centralized customer demand information and it is demonstrated that the bullwhip effect can be reduced, but not completely eliminated, by centralizing demand information. |
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