Bullwhip effect

Supply chain flashcard on bullwhip effect. Bullwhip Effect is a notorious supply chain phenomenon where changes in demand signals lead to amplified expectations upstream. 'Just ordered an extra spoon? Here's a new silverware factory!' Long lead times and nonlinear constraints result in cumulative order variability upstream, creating an inevitable surplus. 'A whisper of demand becomes a scream upstream!' It is also a consequence of supply chain disruptions made worse with time series methods. An image depicts a person dressed in a business suit sitting on a Peloton bike at an office and pedalling hard and sweating. He is wearing medical facial mask and looking at a TV screen. There is a calendar on the wall with 'June 2020' visible. TV is depicting a woman reporter. TV headline is 'Trainer sales up 1000%' At the bottom of the flashcard is a call to action. 'Tame the bullwhip effect with probabilistic forecasts and adaptive inventory policy.'

Artist: Marina Besfamilnaya

Learn more in the entry The Bullwhip effect (supply chain) of the Lokad knowledgebase.