The Bullwhip Effect
Figure 2.3.5.2 discussed the bullwhip effect (or Forrester effect) and its impact on open order quantities and inventories / backorders in a supply chain without communication of point-of-sale data. Discover this effect in a supply chain simulation on the Internet at
www.beergame.lim.ethz.ch
Play the beer distribution game - if possible, with up to three of your colleagues - and compare your results with the findings shown in Figure 2.3.5.2. What is the impact of lead time on the bullwhip effect?