ividual other than the source). To avoid this deterioration of information, the original announcement must be passed from level to level within the chain much as the original demand data is passed from link to link in the centralized information system solution of the karate studio example. This can be accomplished by simply producing a flyer containing correct and complete information that can be passed quickly down the chain. It is important that the information on the flyer be complete and accurate so that it will not have to added to or taken away from in the future. This adding to and taking away from will cause people not to trust the information and ultimately introduce variance into the chain.To illustrate the third principle listed above, let us again talk about the karate studio. In order to eliminate the need for the lower links in the chain to forecast the times and dates of upcoming events, information must be made available well in advance of the event. By promptly releasing information, the need to forecast is reduced. Of course, this requires good planning on the part of the karate studio. Events must be planned well in advance so that the information can be made public. As stated before, this information must be accurate so that variance is not introduced in the event the information must be changed. This reinforces the fact that there is a need for good planning capabilities within an organization.Lastly, let me reiterate the best way to avoid the bullwhip effect. Simply, do not introduce variance. In other words, once an announcement is made, do everything you can to stick to the original plan. For example, if the date of an event is planned and then changed, the next time a date is set people will begin to speculate as to the truthfulness of the date. Those people closest to the source will speculate the least, but those people further down the chain will speculate more because they are not as close to ...
