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The Bullwhip Effect: Managerial Insights on the Impact of Forecasting and Information on Variability in a Supply Chain

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Quantitative Models for Supply Chain Management

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 17))

Abstract

An important observation in supply chain management, popularly known as the bull-whip effect, suggests that demand variability increases as one moves up a supply chain. For example, empirical evidence suggests that the orders placed by a retailer tend to be much more variable than the customer demand seen by that retailer. This increase in variability propagates up the supply chain, distorting the pattern of orders received by distributors, manufacturers and suppliers.

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© 1999 Springer Science+Business Media New York

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Chen, F., Drezner, Z., Ryan, J.K., Simchi-Levi, D. (1999). The Bullwhip Effect: Managerial Insights on the Impact of Forecasting and Information on Variability in a Supply Chain. In: Tayur, S., Ganeshan, R., Magazine, M. (eds) Quantitative Models for Supply Chain Management. International Series in Operations Research & Management Science, vol 17. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-4949-9_14

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  • DOI: https://doi.org/10.1007/978-1-4615-4949-9_14

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-7246-2

  • Online ISBN: 978-1-4615-4949-9

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