BULLWHIP EFFECT
Bullwhip effect is a condition that occurs in the supply chain where customer demand is changing. These changes resulted in a series of effects that would disrupt the supply chain. Lack of coordination in the exchange information between retail, distributors, and companies can lead to bullwhip effect. A simple example is the story of a greengrocer below as written by Mr. Windede. By using mobile phones, now housewifes send short messages to greengrocer at night or a day before. So no more housewifes who live at the end of the aisle miss his favorite vegetable. The greengrocer now bringing the vegetable based on the short messages orders. The greengrocer has been transforming the way vegetable business from the "bring to stock" to "bring to order". Before he take advantage of this way, he should purchase the stock in the market without knowing the needs of the housewifes. Sure he did "forecast" what and how much should be purchased in the marke...