Sample Management Essays On The Bullwhip Effect

Homework Question on The Bullwhip Effect

  • Prepare a research paper about “The Bullwhip Effect”.
  • This paper should be in font size 12, Times New Roman style, double spaced and include the bibliography.
  • Basically you should cover in detail 3 things:
  1. What is the Bullwhip Effect,
  2. When does it happen and
  3. What measures could be taken to prevent and/or solve this effect. The length is 3 full pages.

Homework Answer on The Bullwhip Effect

The aim of a supply chain is to acquire the right variety of goods and services in order to satisfy customers’ needs. To attain such goal, the supply chain’s links must function efficiently, in addition to organizing and integrating with up and down links within the chain. The unpredicted spikes of demand may stimulate the supply end of a production chain to react to changes that occur in the production. When the supply and production issues generate effects on the consumer at the end of a supply chain, then the bullwhip effect occurs due to up and down ripples at the chain.

According to Kumar (2010), the overall customer demand may not be changing, but distributor ordering demand fluctuates, which sometimes raises the demand at the manufacturing level. Thus, the bullwhip effect involves an enlarged inconsistency within the supply chain.Differences in the demand patterns, or even small changes in the customers’ demand, is enough to create fluctuations in ordering volumes, which is capable of rising along the chain.

Homework Help

A good example of the bullwhip effect is the recession that occurred in the US’s manufacturing sector in 2007 to 2009, where retailers responded aptly to the slump in demand whereas manufactures reacted impulsively to the outcomes (Dooley et al., 2010). Small changes are experienced at the end-customer, but an upward movement along the supply chain towards the manufactures can create large variations, and as each firm endeavors to solve its problems, the network of chains oscillates and develops large swings.