What is the bullwhip effect, and how to avoid it?
Within the supply chain, the issue of demand variations is at the origin of the Bullwhip effect, a phenomenon theorised as early as 1961. This is because estimating stock is difficult when each link in the chain increases the gap between the forecast and reality. Let’s look at how this “whiplash” or rather series of jolts interferes with the stock and profitability and the ways to avoid it.