As demonstrated in the accompanying graphic, management failure can result in a bullwhip effect, therefore integrated supply chain management must be able to prevent asymmetric knowledge or poor coordination between actors. How does the bullwhip effect happen, and how does the operations manager deal with the issue, say, by using big data analysis? (Perhaps with illustrations of actual instances of specific business activity!

Transcribed Image Text:

Order Quantity 60 50 40 Retailers respond 30 by ordering more 20 Suppliers believe sales are huge and respond accordingly 10 1 2 3 A short-term increase in consumer demand 4 5 6 Day Wholesalers order even more to be sure retailers can be adequately supplied 7 8 9 10 11 Suppliers - Wholesalers Retailers Consumers Order Quantity 60 50 40 Retailers respond 30 by ordering more 20 Suppliers believe sales are huge and respond accordingly 10 1 2 3 A short-term increase in consumer demand 4 5 6 Day Wholesalers order even more to be sure retailers can be adequately supplied 7 8 9 10 11 Suppliers - Wholesalers Retailers Consumers

Answer rating: 100% (QA)

The bullwhip effect is a real phenomenon in supply chains that can be caused by a number of factors including poor coordination between different actors in the chain as well as a lack of information s... View the full answer