Final answer:
Small order batches, delayed differentiation, and centralized decision-making are strategies that can help eliminate the bullwhip effect in supply chains.
Step-by-step explanation:
The bullwhip effect refers to the phenomenon where small fluctuations in consumer demand cause larger fluctuations in demand further up the supply chain. This can lead to inefficiencies and increased costs. To help eliminate the bullwhip effect, one strategy is to use small order batches. By reducing the size of each order, companies can better match demand and supply, reducing the need for large fluctuations in production.
Another strategy is delayed differentiation. This involves postponing the customization of products until closer to the point of sale. By delaying differentiation, companies can reduce excess inventory and better align production with actual demand.
Centralized decision-making is also a strategy that can help eliminate the bullwhip effect. By centralizing decision-making, a single entity can have better visibility and control over demand and supply information, making it easier to coordinate and manage the supply chain.