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SUPPLY-CHAIN-BASICS5 MIN READ

Sort the Bullwhip Causes Before You Prescribe a Fix

Differentiate demand-signal processing, order batching, and shortage gaming as distinct bullwhip causes.

Place each example into the primary bullwhip cause. Demand-signal processing Order batching Shortage gaming A distributor raises the monthly forecast after one retailer orders above plan for a single week A plant orders once a month in very large quantities because it wants to minimize PO effort Buyers inflate their orders because they expect the supplier to allocate only part of what they request A planner changes the baseline forecast from customer orders without checking sell-through data Weekly demand is steady, but upstream orders swing because each node buys in large infrequent lots Customers place extra orders before a rumored…

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