Remember the game Telephone? This is what it looks like when a supply chain plays it. Nudge your guess below and watch what it turns into by the time it reaches the top.
How big it gets
—
adjust your guess →
Build your chain
How far off is your guess?±5%
How far off is the retailer's guess about next month's demand?
How many companies in the chain?3
How many hands does the order pass through before raw materials?
Order once a week instead of daily
Batching orders instead of ordering continuously makes every swing worse.
SENDING YOUR GUESS UP THE CHAIN…
THE TELEPHONE EFFECT · YOUR RESULT
+52%
A ±5% guess at the retailer became a +52% swing by the time it reached the manufacturer. Same starting guess. No new information. Just distance.
the bullwhip effect · simplified simulation#TelephoneEffect