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Posts Tagged Bullwhip Effect

Supply Chain Management: Beergame

Supply Chain Management: Beergame

Introduction The beergame is a role-play supply chain simulation that lets students experience typical supply chain problems. In the beergame students enact a four stage supply chain. The task is to produce and deliver units of beer: the factory produces and the other three stages deliver the beer units until it reaches the customer at the downstream end of the

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Understanding the ‘Bullwhip’ Effect in Supply Chains

Understanding the ‘Bullwhip’ Effect in Supply Chains

By Martha E. Mangelsdorf Today’s Wall Street Journal  has a noteworthy front-page article about the “bullwhip” effect, as it is starting to play out in businesses as the economy recuperates. What’s the bullwhip effect? The WSJ article explains: “This phenomenon occurs when companies significantly cut or add inventories. Economists call it a bullwhip because even small increases in demand can cause a big snap in

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