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ZvpurnyWbeqnaWhzczna

Business Finance

Description

Your boss was recently reading about supply chain management. During her reading, she came across the term bullwhip effect. She also asked you to put together a presentation about the bullwhip effect so that she could explain it to senior management.

Include the following in your presentation:

  • How does the bullwhip effect happen?
  • Why is the effect bad?
  • What can be done to reduce or eliminate the effect?

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Explanation & Answer

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The Bullwhip Effect
INSTITUTION AFFILIATION
DATE

Introduction


Bullwhip effect is when some key factors in the chain of supply brings
about common problems in the management of demand as well as
supply.



Such factors include demand for supply, time and lack of communication
among others.



The orders sent to the manufacturer as well as the supplier normally create
a variance that is more than that of the end customer sales.

How the Bullwhip Effect Happens


The bullwhip effect is something tha...


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