1. The Bullwhip Effect in Supply Chains
工業工程所
劉兆文
李英睿
林嘉龍
湯慶偉
林雯婷

2. What is Bullwhip Effect ?
Suppliers
Wholesalers
Retailers
Customers
Order variability in the supply chain were amplified as they moved up the supply chain.

3. What is Bullwhip Effect ?
Customer
Retailers
Wholesalers
Suppliers

4. Major Causes
Demand forecast updating

5. Solution Demand forecast updating Information Sharing : EDI, POS
Vendor-managed inventory (VMI)

6. Major Causes
Order Batching
Orders Placed
Actual Sales

7. Solution Order Batching Delivery appointments Consolidation
Outsourcing

8. Major Causes
Price fluctuation
Rationing and shortage gaming

9. Solution Price Fluctuation Shortage Gaming
Continuous replenishment program (CRP)
Everyday low price (EDLP)
Shortage Gaming
Allocation based on past sales

10. Conclusion
Bullwhip effects are products of rational decisions of supply chain members.
Bullwhip effects can be effectively counteracted.
The choice: either let the bullwhip effect paralyze the company or find a way to conquer it.

11. Q & A