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Improvement of Supply Chain Management by Bullwhip Effect Reduction

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Abstract

The overall supply chain (SC) for an item from the moment of preparing for production (resource supplying) through production until the moment of product placement on the shelf of retail facilities is accompanied by a great amount of inventories in every “inter-station” — each SC company. The lack of information or/and incomplete information is the same as the fear of the impossibility of meeting the demand that affects the supply creation in every SC member — starting from the inventory in the raw material warehouse of the producer through the inventory of finished goods of the producer to the inventory in the central distribution warehouse, local wholesale warehouses, and even in the warehouses of retail facilities. The SC members are the first, the second, the third, and so on successors to each other; or observed in the reverse direction the third, the second, and the first predecessor.

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© 2014 Danica Lečić-Cvetković, Nikola Atanasov, and Jasmina Omerbegović-Bijelović

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Lečić-Cvetković, D., Atanasov, N., Omerbegović-Bijelović, J. (2014). Improvement of Supply Chain Management by Bullwhip Effect Reduction. In: Jakšić, M.L., Rakočević, S.B., Martić, M. (eds) Innovative Management and Firm Performance. Palgrave Macmillan, London. https://doi.org/10.1057/9781137402226_11

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