Based on a particular case study, this paper presents two approaches to buffer management under demand uncertainty, which is characterized by high lumpiness, dispersion and volatility. The common theme of both of the two approaches is not to find an advanced statistical method to improve demand forecast on the basis of historical data. Rather, these approaches provide new business paradigms to ...

Abstract The firm‐level bullwhip effect is the amplification of demand uncertainty along a supply chain—that is, fluctuations in production (for manufacturing firms) or purchases from suppliers retailers wholesalers) firm tend to be greater than its fluctuations. We predict that ratio (a proxy for effect) amplifies relation between and cost structure. expect this amplifying because determines e...