Keep the Bullwhip Countermoves Ready
Recall the mechanisms and practical countermeasures behind the bullwhip effect.
What is the bullwhip effect in one sentence? Small changes in downstream demand become larger swings in upstream orders and production as each tier adds its own interpretation and protection. The amplification usually reflects order-based forecasting, batching, delay, or shortage behavior rather than a giant change in real consumer demand. Promotion event or baseline demand shift? They require different planning responses. Many bullwhips start when teams respond to event demand as if it were baseline demand. "If one customer is shouting, we should raise the forecast everywhere so we are not late upstream." Say this We should protect the near-term…
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