Managing Bullwhip Effect: Two Case Studies

Abstract

The purpose of this article is to present two examples based on real life experiences where the Bullwhip effect in supply chain is considerably reduced. Both examples relate to the consumer durables industry in India. The first example uses Enterprise Resource Planning and Vendor Managed Inventory as tools to reduce the Bullwhip Effect. The second example uses a modification of the classical inventory control policies to eliminate Bullwhip Effect. Based on these two empirical case studies, we argue that managing Bullwhip Effect is a strategic initiative by organization and the best approach is a combination of several tactical initiatives.