{"id":2349,"date":"2019-05-22T18:04:18","date_gmt":"2019-05-22T08:04:18","guid":{"rendered":"https:\/\/comprara.com.au\/procurement-glossary\/bullwhip-effect\/"},"modified":"2021-08-23T03:27:50","modified_gmt":"2021-08-23T03:27:50","slug":"bullwhip-effect","status":"publish","type":"glossary","link":"https:\/\/www.comprara.com.au\/procurement-glossary\/bullwhip-effect\/","title":{"rendered":"Bullwhip Effect"},"content":{"rendered":"
Also known as the Forrester Effect<\/a>, the term applies to the responsiveness of supply chains to a change in demand. As an example, supposing there is a fire in a factory bottling cola. Retailers hear of the fire and, fearing an interruption to supply, double their orders with their distributors. The distributors experience an increase in orders and, fearing a stock<\/a>-out, increase their orders on the bottler, adding a ‘just in case’ component to the retailer’s original orders. The bottler is inundated with orders and can only supply a proportion of the orders, so puts the distributors on allocation<\/a>. In panic, the distributors raise fresh orders on the bottler and encourage the retailers to do the same. The demand amplification causes the bottler to experience a distorted perception of actual market demand, as retailer sales and consumption of cola may well be unchanged. See also Agility<\/a>, Forrester Effect<\/a> and Supply Chain<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Also known as the Forrester Effect, the term applies to the responsiveness of supply chains to a change in demand. As an example, supposing there is a fire in a factory bottling cola. Retailers hear of the fire and, fearing an interruption to supply, double their orders with their distributors….
Read more<\/a>.<\/p>\n","protected":false},"author":2,"featured_media":0,"menu_order":0,"template":"","meta":{"_acf_changed":false,"_uag_custom_page_level_css":""},"acf":[],"yoast_head":"\n