Whether eliminating intermediaries would always get rid of Bullwhip effect and the circumstances when it may not work are to be determined. Concept Introduction: Bullwhip effect: Bullwhip effect is the effect created by the distribution channels by placing order that has variation than the actual retail sales. The small variation between the order and the demand at each distribution channel sets a huge variability in the order of materials from the supplier to the customer. This effect is called as bullwhip effect. It is also called as whipsaw effect.

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Chapter 6.2, Problem 4P

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Interpretation:Whether eliminating intermediaries would always get rid of Bullwhip effect and the circumstances when it may not work are to be determined.

Concept Introduction:

Bullwhip effect:

Bullwhip effect is the effect created by the distribution channels by placing order that has variation than the actual retail sales. The small variation between the order and the demand at each distribution channel sets a huge variability in the order of materials from the supplier to the customer. This effect is called as bullwhip effect. It is also called as whipsaw effect.

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