Operations Management AKTU

1 Bullwhip Effect in SCM and Push and pull Systems
•The Bullwhip Effect in Supply Chains: A Chain Reaction of Misinformation

•The bullwhip effect, a common phenomenon in supply chain management (SCM), refers to the amplification of demand fluctuations as information travels upstream from retailers to manufacturers and raw material suppliers. It’s like a game of telephone – a small whisper at the retail end can turn into a distorted shout by the time it reaches the beginning of the supply chain.