Measurement and Analysis of Demand Amplification Across the Supply Chain

Abstract

The Demand Amplification Effect has been well described in the literature over many years, yet it is clear that the effect is still prevalent in many supply chains. In this paper, a practical approach is described for identifying and measuring demand amplification. The approach was applied within the upstream automotive component supply chain in the U.K. The causes of demand amplification within this scenario are analyzed and compared to those identified in previous work. The work described is the first part of a wider project, the aim of which is to develop a comprehensive approach to enable management to counteract the problem of demand amplification.

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