Bullwhip Simulation: Part 2

There are a couple of ways in which one can go about reducing the Bullwhip effect. First and foremost, the manager has to focus on the demand experienced by factories rather than being getting to myopic about the demands from the customers only. As demand from customers is easy to predict, many managers get complacent doing so, which ignores day-to-day fluctuations in favor of running level. Another method would be to reduce or eliminate the delays along the supply chain. It’s easier to say than to accomplish. And I can definitely say that after completing the Bullwhip simulation where it is such a commonplace to fall for either the demand creep from the customers or the inventory creep because of over producing or wrong prediction.