Diagnosis and reduction of bullwhip in supply chains
Abstract
“Bullwhip” describes the general tendency for small changes in end‐customer demand to be amplified within a production‐distribution system. A 10 per cent increase in sales to end‐customers can precipitate a 40 per cent upswing in production and subsequent downswing (as excess stocks are depleted) within a three‐echelon supply chain. It is shown how proven material flow control principles significantly reduce bullwhip in a global supply chain. The evidence demonstrates that a methodology, which has evolved over several decades, provides a suitable framework for effective change. Bullwhip is not a new problem; it is a new name coined to describe a very well‐known problem. Some observed barriers to change are briefly reviewed.
Keywords
Citation
McCullen, P. and Towill, D. (2002), "Diagnosis and reduction of bullwhip in supply chains", Supply Chain Management, Vol. 7 No. 3, pp. 164-179. https://doi.org/10.1108/13598540210436612
Publisher
:MCB UP Ltd
Copyright © 2002, MCB UP Limited