| An organization will always have ups and downs. It is | | | | Inefficient allocation of resources |
| necessary that the managers of the organization | | | | Increased transportation cast |
| keep track of the market conditions and analyze the | | | | How to prevent it? |
| changes. They must take decisions on the | | | | Bullwhip effect may be avoided by one or more of |
| organization to meet the market demands. Failing to | | | | the following measures- Avoid multiple demand |
| do so may adversely affect the functioning of the | | | | forecasting |
| organization resulting in lack of coordination and trust | | | | Breading the single orders into number of batches of |
| among supply chain members. The changes may | | | | orders |
| effect the information and may lead to demand | | | | Stabilize the prices avoid the risk involved in |
| amplification in the supply chain. The bullwhip effect is | | | | overstocking by maintaining a proper stock |
| the uncertainty caused from distorted information | | | | Reduce the variability and uncertainty in paint of sale |
| flowing up and down the supply chain. This has its | | | | (POS) and shaving information |
| affect on almost all the industries, poses a risk to | | | | Reduce the lead time in the stages of the project |
| firms that experience large variations in demand. And | | | | Always keep analyzing the past figures and track |
| also these firms which are dependent on suppliers, | | | | current and future levels of requirements |
| distributors and retailers. | | | | Enhance the operational efficient and outsourcing |
| A bullwhip effect may arises because of- | | | | logistics to capable and efficient agency |
| Increase in the lead time of the project due to | | | | On the bullwhip effect it is the theory from MBA |
| increase in variability of demand | | | | book MB0028 of Sikkim Manipal University. It is one |
| Increase in the stock to stock to accommodate the | | | | of the questions of MBA assignments. Bullwhip effect |
| increasing demand arising out of complicated | | | | prevention theory has been introduced in the |
| demands models and forecasting techniques | | | | assignment also. |
| Reduced service levels in the organization | | | | |