Jan C. Fransoo

Measuring the Bullwhip Effect in Supply Chains

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Measuring the bullwhip effect in the supply chain

The bullwhip effect in supply chains has been around for some time now. The term “bullwhip effect” originated at Procter & Gamble, and is defined as: demand amplification across echelons within a supply chain. This describes the effect that end customer demand may be very static (as for “Pampers” by Procter & Gamble), but the demand experienced by the manufacturer or supplier shows amplified demand variations. (Fransoo and Wouters (2000))

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