Bullwhip Effect Causes and Impact. How Can Improved IT Support Reduce Bullwhip Effect

Dnyanesh Sarang

Table of Contents

1 Introduction 2

2 Supply Chain & Bullwhip Effect 2

3 Causes of Bullwhip effect 4
3.1 Demand Forecast Updating 4
3.2 Order Batching 5
3.3 Price Fluctuation 5
3.4 Rationing and shortage gaming 5

4 Impact of Bullwhip Effect 6
4.1 Manufacturing Cost 6
4.2 Inventory Cost 6
4.3 Replenishment Lead Time 6
4.4 Transportation Cost 6
4.5 Level of Product Aavailability 6
4.3 Profitabilityy 7

5 How can improved IT reduce Bullwhip effect 7
5.1 Sharing Point of Sales Data(POS) 8
5.2 Implementing Collaborative Forecasting & Planning (EDI & CAO) ……….. 9
5.3 Designing Single Stage Control of Replenishment (CRP & VMI) 10
5.4 Conclusion 11

References 12

1. INTRODUCTION:

From many years Bullwhip Effect has played crucial role in supply chain management. Proctor & Gamble (P&G) has seen the bullwhip effect in case of supply chain......

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Title: Bull-Whip Effect. Causes & Impact. How Can Improved It Support Reduce Bullwhip Effect
Approximate Word Count: 3671
Approximate Pages: 15 (250 words per double-spaced page)

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