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| Topic: |
Technology
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| Number of pages / Number of words: |
4 / 946 |
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Moving up the supply chain from end-consumer to raw materials supplier, each supply chain participant has greater observed variation in demand and thus greater need for safety stock. In periods of rising demand, down-stream participants will increase their orders. In periods of falling demand, orders will fall or stop in order to reduce inventory...
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The effect is that variations are amplified the farther you get from the end-consumer.
- Supply chain experts have recognized that the Bullwhip Effect is a problem in forecast-driven supply chains. The alternative is to establish a demand-driven supply chain which reacts to actual customer orders...
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