The Forrester Effect in the global supply chains – sources, consequences and elimination methods Cover Image

Efekt Forrestera w globalnych łańcuchach dostaw – źródła, konsekwencje i sposoby eliminowania
The Forrester Effect in the global supply chains – sources, consequences and elimination methods

Author(s): Anna Baraniecka
Subject(s): National Economy, Business Economy / Management
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: Forrester Effect; supply chain management; forecasting error; sales and operations planning (S&OP)

Summary/Abstract: Supply chain management, seems to be a well-known concept, both in theory and in the economic practice. It does not mean, however, that the knowledge of the field is well commercialized and the results obtained in practice will fulfil the hopes of scientists. Numerous difficulties in the realization of supply chain management standards, which are often very difficult to predict by theoreticians, effectively restrict the potential of the 53concept and at the same time they increase the costs of its implementation. One of such restrictions is inappropriate communication between partners in the supply chain, as well as within individual organizations, particularly with regard to planning or forecasting activities. The best described consequence of bad communication and the errors resulting from it in supply chain forecasting is the Forrster Effect, known also as the Bullwhip Effect or Demand Amplification phenomenon. The aim of the paper is to characterize the effect and to show its origins and consequences, as well as to establish the methods of its effective reduction. The objective is obtained by the author by drawing conclusions both on the basis of a thorough literature study as well as own research and professional experience in projects identifying and eliminating the Forrester Effect in supply chains.

  • Issue Year: 2017
  • Issue No: 56
  • Page Range: 52-66
  • Page Count: 15
  • Language: Polish
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