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Business Finance

Description

Managing the Bull Whip Effect

  • • Define and describe the bull whip effect
  • • Determine potential risks and effects on a corporation
  • • Describe potential solutions to minimize negative effects on a corporation supply chain management, inventory management or profitability

Writing Requirements

  • The Essay must be 5 pages long.
  • Must have an introduction with a clear thesis statement, a body discussing the three main points and a conclusion
  • Conduct research to find relevant information using reliable sources to support your views.
    • (Use at least 2 academic books and 3 scholarly articles from a library database)
    • Use APA Style for in-text citations, and references
  • Turn in the Paper to SMARTHINKING.com before submitting your final paper.

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Running head: THE BULLWHIP EFFECT

The Bullwhip effect

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THE BULLWHIP EFFECT

2

Managing the Bull Whip Effect
Introduction
The bullwhip effect points out to the rare occurrence and deformity of demand in a supply chain.
By getting rid or managing this effect, it is probable to raise product expediency decreasing not
valuable costs like stock-out as well as disuse stocks. However, there are various ways to
decrease the negative effects of the bullwhip effect as discussed below. This paper discusses
various ways of decreasing the negative effects of bullwhip effect and potential solutions to
minimize negative effects on a corporation supply chain management and inventory
management or profitability.
Define and describe the bullwhip effect
The bullwhip effect points out to the rare occurrence and deformity of demand in a supply chain.
By getting rid or managing this effect, it is probable to rise product expediency decreasing not
valuable costs like stock-out as well as disuse stocks. The effect is not a valuable index of the
chain’s efficiency, this is because it does not hold the fluctuations that take place in the
inventories, which may as well impact the supply chain performance. (Janusz K. Grabara, Marta
Starostka-Patyk, (n.d.).
The bullwhip effect is delineated as the deformity of demand information as one goes upstream
in the supply chain, bringing about critical wastefulness in the entire supply chain. (Francesco
Costantino, Giulio Di Gravio*, Ahmed Shaban, Massimo Tronci, (2013).
Determine potential risks and effects on a corporation

THE BULLWHIP EFFECT

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The bullwhip effect usually leads to an overreaction in the market, the demand increases and so
does the capacity of the entire supply chain management. When demand goes down a lot of
products will be set aside as backlog in inventory. The supply chain, on the other hand, will be
profoundly affected by the poor cash flow which can e...


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