The bullwhip effect on supply chain management

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Running head: SUPPLY CHAIN MANAGEMENT REPORT 1

Supply Chain Management Report

Student's Name

Institutional Affiliation

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SUPPLY CHAIN MANAGEMENT REPORT 2

Supply Chain Management

The Bullwhip Effect on Supply Chain Management

The supply chains affected by the whiplash effects are characterized by low or lack of

communication throughout the chain upstream. Ineffective communication of the customers'

requests or demands is felt by all the stakeholders in the supply chain (White, 2019). Secondly,

when a corporation introduces a new product in the market. The forecast is inaccurate on the

movement of the product, a challenge to keep the new demand for the new product will present a

backlog of stock. There will be significant problems with stock-outs in retail outlets. Hence

inconsistency in production of the product, which delays production and delivery of goods. Thus

affecting the existing customers and the prospective buyers of such firms. (White, 2019). The

lack of safety stock is another trait of supply chains adversely affected by the whiplash effect.

Consequently, the lack of safety stock or back up stock is a manifestation of the

disorganization in managing the chain supply. It creates a gap between the customers and the

suppliers, bringing the purchasing low, or the customers are forced to wait for production, which

is a negative reputation on the supply chains. There is also a lack of collaboration and

cooperation among chain stakeholders (Laporte, 2019). Lack of sharing real-time information

delays customers' requests. Therefore, the most affected chain suppliers have not embraced the

use of information technologies. Thus, they are not updated in the sharing of information through

the chain.

The supply chains that do not evaluate and optimize on the landed cost or the price at the

end of the chain feel the amplified effects of the whiplash because they might lose customers.

Finally, the lack of a functional relationship between the management is a strong indication that

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Running head: SUPPLY CHAIN MANAGEMENT REPORT Supply Chain Management Report Student's Name Institutional Affiliation 1 SUPPLY CHAIN MANAGEMENT REPORT 2 Supply Chain Management The Bullwhip Effect on Supply Chain Management The supply chains affected by the whiplash effects are characterized by low or lack of communication throughout the chain upstream. Ineffective communication of the customers' requests or demands is felt by all the stakeholders in the supply chain (White, 2019). Secondly, when a corporation introduces a new product in the market. The forecast is inaccurate on the movement of the product, a challenge to keep the new demand for the new product will present a backlog of stock. There will be significant problems with stock-outs in retail outlets. Hence inconsistency in production of the product, which delays production and delivery of goods. Thus affecting the existing customers and the prospective buyers of such firms. (White, 2019). The lack of safety stock is another trait of supply chains adversely affected by the whiplash effect. Consequently, the lack of safety stock or back up stock is a manifestation of the disorganization in managing the chain supply. It creates a gap between the customers and the suppliers, bringing the purchasing low, or the customers are forced to wait for production, which is a negative reputation on the supply chains. There is also a lack of collaboration and cooperation among chain stakeholders (Laporte, 2019). Lack of shar ...
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