Counter Measures to the Bullwhip Effect
Introduction The bullwhip effect is the unexpected distortion of the supply chain. It refers to the “variability of order rates” (Disney and Lambrecht, 2008, p. 3). This supply chain hazard has its roots in Jay Forrester’s Industrial Dynamics Theory of the late 1950s (Goldsby and Martichenko, 2005). Forrester was the first person to introduce the concept and simulate a model in 1961. There are many solutions to counter the bullwhip effect. The reason why there are many solutions to the bullwhip effect is because it is triggered by multiple causes. For instance, the most common cause is overreacting ...
