Indiana Jones and the supply chain bullwhip effect
Kinaxis
JULY 30, 2018
by Joe Cannata According to the European Journal of Operational Research , the term ‘bullwhip effect’ was first coined by Procter & Gamble (P&G) in the 1990s in reference to the order variance amplification phenomenon observed between P&G and its suppliers.”. A small shift in customer demand essentially cracks the whip, and the further a supplier is from the demand, the more significant the impact, which inevitably leads to increasing swings in inventory for suppliers.
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