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A formulation for measuring the bullwhip effect with spreadsheets

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Abstract

The bullwhip effect refers to the scenario in which orders to suppliers tend to present larger fluctuations than sales to buyers, and the resulting distortion increasingly amplifies upstream in a supply chain.We propose a transformation of the known formulation by Chen et al. (2000) to calculate the bullwhip effect in a supply chain for the purpose of being easily applied with spreadsheets without usingVBA macros.We present this formulation modeled by Ms Excel® using a numerical example.