How to reduce Bullwhip effect?

Methods for coping with Bullwhip effect
1. LT reduction
1.1 Implement cross-dock to reduce order lead times
1.2 Use EDI to reduce information lead time. Centralizing information will reduce variability to benefit upstream stages. However, information sharing is a problem in many industries. 

2. Strategic partnership
2.1 VMI: Manufacturing part can manage the inventory of its product at the retailer outlet. 


How to have a effective forecasts?
Forecast type
1. Retailer forecasts 
2. Distributor and manufacturer forecasts

=> Using cooperative forecasting systems with iterative forecasting process to let all participants in the supply chain collaborate to arrive at an agreed-upon forecasts.