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Back in the late ‘90s, Proctor & Gamble discovered that diapers were having a strange effect on the supply chain. Despite the relatively steady rate of diaper consumption amongst babies, the demand from retailers placing orders to the wholesalers demonstrated dramatic fluctuations, which were even more erratic when wholesalers ordered from P&G. This strange demand behavior, which was due to stockpiling at various levels within the supply chain, became known as “the bullwhip effect.” This VUCA phenomenon has been exacerbated in the present by the Covid-19 pandemic, the full impact of which we are just now beginning to really experience. On this episode of WMD, Dr. Tamara Schwartz talks with colleagues Dr. Mohammed Raja and Dr. Matt Shatzkin of the York College of PA Supply Chain Management program.
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Back in the late ‘90s, Proctor & Gamble discovered that diapers were having a strange effect on the supply chain. Despite the relatively steady rate of diaper consumption amongst babies, the demand from retailers placing orders to the wholesalers demonstrated dramatic fluctuations, which were even more erratic when wholesalers ordered from P&G. This strange demand behavior, which was due to stockpiling at various levels within the supply chain, became known as “the bullwhip effect.” This VUCA phenomenon has been exacerbated in the present by the Covid-19 pandemic, the full impact of which we are just now beginning to really experience. On this episode of WMD, Dr. Tamara Schwartz talks with colleagues Dr. Mohammed Raja and Dr. Matt Shatzkin of the York College of PA Supply Chain Management program.