De waarde van informatie - The Bullwhip effect - Quantifying the bullwhip effect
3 important questions on De waarde van informatie - The Bullwhip effect - Quantifying the bullwhip effect
How do we calculate the estimated average demand?
With:
Di = customer demand
p = number of previous observations
How do we calculate the increase in variability?
With:
Var(D) = the variance of the customer demand seen by the retailer
Var(Q) = the variance of the order placed by that retailer to the manufacturer
When is the bullwhip effect increased?
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