Demand amplification: has it got us beat?

Abstract

The demand amplification effect has been well described in the literature over many years. This paper reports the results of a research project carried out in the UK automotive component supply chain, which set out to eliminate the effect in practice. The paper describes the progression from the identification of demand amplification, through a practical approach for its measurement, to the development of a methodology to overcome the negative impacts of the effect across three echelons of the supply chain. The results of a six‐month trial implementation are reported.

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