dell scm stragy

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What is the Bullwhip Effect?What are reasons for the Effect? The Beer Distribution Game: Simulating a Supply Chain

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DELL SCM STRAGYProf. Dr. P. Schnsleben Prof. M. BaertschiZRICHBWISupply Chain World Europe 2002,28-30 October, 2002, AmsterdamWhat is the BullwhipEffect caused by?Study based on theBeer Distribution Game onlineJrg Nienhaus (email: Joerg.Nienhaus@ethz.ch)Swiss Federal Institute of Technology (ETH) ZrichLogistics and Information Management2002 by SCM GroupProf. Dr. P. Schnsleben Prof. M. BaertschiZRICHBWIAgendaPart IWhat is the Bullwhip Effect?What are reasons for the Effect?Part IIThe Beer Distribution Game:Simulating a Supply ChainPart IIIWhat is the Role of Human Behaviorin the Bullwhip Effect? (Study basedon the Beer Distribution Game online)Part IVHow can Supply Chains copewith the Effect?2002 by SCM GroupProf. Dr. P. Schnsleben Prof. M. BaertschiZRICHThe Bullwhip EffectOrders and Stocks in a Supply ChainOEM1st Tier2nd Tier3rd TierInformation (Orders)BWIMaterial2002 by SCM GroupProf. Dr. P. Schnsleben Prof. M. BaertschiZRICHBWIThe Bullwhip EffectOrders and Stocks in a Supply ChainOEM1st Tier2nd Tier3rd TierObservations:Variation of stocks and orders increases upthe supply chain from customer to supplier.The longer lead times of information and materialare, the stronger the effect is.Famous example:Demand for Pampers disposal diapers,analyzed and published by Procter&Gamble2002 by SCM GroupProf. Dr. P. Schnsleben Prof. M. BaertschiZRICHBWIThe

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