Bullwhip Effect
.Bullwhip Effect (some articles using the meaning that the horsewhip). Is a phenomenon in the supply chain when consumers have a number of downstream demand and order goods from their suppliers.. with the number of items do not meet the real needs of consumers downstream. Which most often ordered more than the actual requirement for some reason, such as
.- do not know the real needs of consumers downstream. To predict the needs of customers, which forecast is error!- always optimistic that the goods will have to sell it to order, or order to produce very first. With the attitude that if left for lack of better
.- want to avoid being customers complaints when there is enough product delivery. Therefore, customer satisfaction or Service Level higher first by to collect more stock
.- although actually need the goods is not much, but must be ordered too much need to order according to minimum order quantity is the least
-. Order more than actual need to discount in order
- etc.
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