Abstract or Introduction
The phenomenon where orders to the supplier tend to have larger variance than sales to the buyer (i.e. demand distortion), and the distortion propagates upstream in an amplified form (i.e. variance amplification)” is a simple yet precise definition of the bullwhip effect. With this definition as a reference point I will in this assignment investigate the bullwhip effect.
Supply network costs account for a significant proportion of a company’s costs. On average supply network costs in a pharmaceutical company is 9% of total costs and in supply companies on average 15%. We see significant differences, up to 12%, between “best in class” companies and the average company.
- Quote paper
- Lasse Skaksen (Author), 2011, Bullwhip - forester effect, Munich, GRIN Verlag, https://www.grin.com/document/233409
Similar texts
Publish now - it's free
✕
Excerpt from
7
pages
Comments