Philips Electronics Synchronizes Its Supply Chain to End the Bullwhip Effect

@article{Kok2005PhilipsES,
  title={Philips Electronics Synchronizes Its Supply Chain to End the Bullwhip Effect},
  author={Ton G. de Kok and Fred Janssen and Jan van Doremalen and Erik van Wachem and Mathieu Clerkx and Winfried Peeters},
  journal={Interfaces},
  year={2005},
  volume={35},
  pages={37-48}
}
Demand variability increases as one moves up a supply chain. The demand for finished products is less variable than for subassemblies, which is less variable than for individual components. This phenomenon is known as the bullwhip or Forrester effect. It increases inventory unnecessarily and makes managing the capacity of equipment and personnel difficult. In 1999, Philips Semiconductors confirmed substantial bullwhip effects in some of its supply chains and began developing a collaborative… CONTINUE READING
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