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How to measure and avoid bullwhip effect ?

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Question added by Sarfaraz Liaquat , Assistant Manager Support Service , SalTec Powerlink.com
Date Posted: 2015/03/27
EZE NWOSUAGWU
by EZE NWOSUAGWU , STOCK ASSISTANT , OANDO ENERGY SERVICES

 The bullwhip effect refers to the scenario in which orders to suppliers tend to present larger fluctuations than sales to buyers, and distortion propagates up a supply chain in an amplified manner. As distortion creates additional costs, bullwhip indicators are assumed to be in contingency with costs or added value. Ordering goods (input flow) in distribution centers can be studied as a multi-period dynamic problem. The demand during each period can be considered a stochastic variable. The distribution of this variable is often described with a certain probability function. It is identically distributed in our proposal, based on the production and inventory control results, especially on the variability trade off study. It is also based on the study of the impact of information enrichment on the bullwhip effect in supply chains , where some measures have been introduced

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