The Bullwhip Effect in Different Manufacturing Paradigm: An Analysis

Slight fluctuation in the customer demand produces huge fluctuations in the inventory and production levels of the upstream member of the supply chain. This is known as demand amplification or the bullwhip effect. The bullwhip effect produces huge inefficiencies along the supply chain, captures much-needed working capital by high inventory levels and results in dissatisfied customers. Analyzing a set of nine case studies, results show that agile manufacturing is best suited to deal with a turbulent market with unpredictable demand.