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?

If we increase the lead time and decrease the number of observations.

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