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How everyday low pricing helps to alleviate the bullwhip effect?
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What is the bullwhip effect?
The "whip" probably refers to the sudden change of direction at the tip of a whip. It's the rapid and dramatic acceleration of the tip of the whip when it changes direction, and it may cause it to snap. With a bullwhip, the tip of the whip accelerates so much that it actually breaks the sound barrier creating a small sonic boom. And that's the crack! of the whip that we hear.The bullwhip effect (or whiplash effect) is an observed phenomenon in forecast-driven distribution channels.The bullwhip effect can be explained as an occurrence detected by the supply chain where orders sent to the manufacturer and supplier create larger variance then the sales to the end customer.
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what has OPEC done to limit the effect of non member production on its pricing decisions?
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