Bullwhip Effect
Bullwhip Effect (some articles that used the translation. Impact whipworm) is a phenomenon in the supply chain when downstream consumers are looking to their number and order from their suppliers. When suppliers receive orders that they purchase raw materials to their upstream suppliers is leading to a number of other products that do not meet the real needs of consumers downstream. Which often command more than the actual demand for some reason. For example
- do not know the real needs of consumers downstream. The need to forecast customer demand forecasting, which would be a mistake
- always optimistic that sales will be very good order, or order them. With that attitude for the better, for lack
- To avoid customer complaints, when there were not enough goods delivered. So, the customer is satisfied or a higher Service Level beforehand. By refusing to stock up
- although the fact that they want no more, but had to order more than needed because order quantity Minimum order is at least
- to order more than the actual demand, because demand a discount. In order
etc. -
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