engleski

"Bullwhip effect" in Supply Chains

The system which connects all the elements between the producer and the consumer is called the supply chain. This definition of the supply chain shows its complexity, dynamics and uncertainty. Successful operation of supply chains requires the best possible coordination of its elements, which obviously indicates the utmost importance of the information flow along them. The operation of supply chains on the whole has to be more successful than the operation of their individual elements. It should be noted that such a complex process may give rise to a series of problems, unwanted events, as well as substantial reduction in profits and the level of service. One of such unwanted phenomena which may occur in the supply chain is the "bullwhip effect". This is a possible increase in the diversity of orders which occurs when we move along the elements of the supply chain (from the customers' orders to the producers' orders). The work analyses the processes within the supply chains and the occurrence of the bullwhip effect. The main causes of the bullwhip effect that we encounter daily in the supply chains have been clearly defined. The paper also presents the main negative consequences of such a disturbance within the supply chains, and provides possible solutions for avoiding the bullwhip effect.

supply chains; bullwhip effect; distribution

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