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- W4250200910 abstract "This chapter explains the four causes of the bullwhip effect (BWE): demand signal processing (when the demand parameters are unknown and hence forecasting techniques must be used to estimate them), rationing game (when supply is limited), order batching (when there is a fixed cost for ordering), and price speculation (when the purchase price can change over time). It discusses mathematical models explaining these causes and demonstrating that they occur even when each player in the supply chain is a rational “optimizer”. The chapter models the batching of orders by assuming that a given retailer will not place an order in every time period. Then, it discusses strategies for reducing the BWE. The chapter also suggests that sharing point-of-sale demand information with upstream supply chain members reduces the BWE. It further examines the extent to which sharing demand information with upstream supply chain members can reduce or eliminate the BWE." @default.
- W4250200910 created "2022-05-12" @default.
- W4250200910 date "2019-06-28" @default.
- W4250200910 modified "2023-10-18" @default.
- W4250200910 title "The Bullwhip Effect" @default.
- W4250200910 doi "https://doi.org/10.1002/9781119584445.ch13" @default.
- W4250200910 hasPublicationYear "2019" @default.
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