Forrester (that is why it is possible to find in the literature references to "Forrester effect", although J.Forrester had never named it neither Forrester, nor bullwhip effect).An ultimate customer places orders at the retailer (buys beer). During this period participants have to make important decisions and activities in strict order: Information flow (the information of how much to order) moves along supply chain with a delay of one week. Good flow has a delay of two weeks due to transportation.His demand is defined, but unknown to the participants. Producer gets its orders from production after two weeks as well (to make it easier it is possible to say that one week is for production and one week is for quality control and packaging). (1997) proposed a framework for supply chain initiatives to deal with the bullwhip effect: information sharing, channel alignment, operational efficiency.It means that variability at the "end" of supply chain (closer to consumption, e. retailer) is much less, than at the other "end", where it begins (far from consumer, e. The more actors exist in a particular supply chain and the greater is lead time, the greater demand variability would be.
Using modeling of bullwhip effect with the Beer Game, they prove that the manager uses one of two basic strategies: ‘safe harbor’ or ‘panic’, both having negative impact on the supply chain efficiency.However, while making its own orders the retailer takes into account his own stock levels (from previous periods), sales expectations (including expectations of his own advertising and promotion), discounts from the manufacturer or the distributor, the price of transportation, order processing and other minor factors.Therefore, orders do not look that smooth any more.Bullwhip effect merupakan istilah yang digunakan dalam dunia inventory yang mendifinisikan bagaimana pergerakan demand dalam supply chain.
Bullwhip yaitu cambuk, alat untuk mengendalikan sapi atau banteng.
The proposed method permits controlling the retailer orders’ variability above the other factors in the bullwhip effect.