Access over 20 million homework & study documents

search

The bullwhip effect on supply chain management

Content type
User Generated
Rating
Showing Page:
1/6
Running head: SUPPLY CHAIN MANAGEMENT REPORT 1
Supply Chain Management Report
Student's Name
Institutional Affiliation

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/6
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

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/6

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 6 pages?
Access Now
Unformatted Attachment Preview
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 ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Excellent! Definitely coming back for more study materials.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Documents