Forrester’s Effect. Bullwhip effect
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Bullwhip effect term is related with supply chain. Such effect explains the fluctuation in the sales (demand), manufacturing and supply. Such term is understood as distorted demand, that increases when the supply chain is relocated to upper level . Such an effect generally results from the ineffective information flow in the supply chain, what leads to the accumulation of excessive stock at particular partners. Four basic cases of the bullwhip effect can be discerned : Forrester’s effect, it is related with the execution time and processing the signal on the demand level; Burbidge’s effect, it is related with grouping the orders; Houlihan’s effect, it is related with rationalisation and shortage of products; promotional effect, it is related with the fluctuation of prices. Bullwhip effect is described in this papers; general focus is made on its element, namely the Forrester’s effect.
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