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SAP Supply Chain Management

Bullwhip Effect - A Phenomenon in Forecast Driven Distribution Models

In times of global competition and s networked economy, companies that were once closed entities realize the importance of opening up by collaborating with their supply chain partners. This article discusses the Bullwhip Effect, the most common phenomenon observed in forecast-driven distribution models. The discussion is extended to understand the reasons for this phenomenon with suggestions given to counter the bullwhip effect.

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