🧪 Supply Chain Demand Forecasting Simulation
Watch the bullwhip effect emerge live: a customer's mild, noisy demand gets forecast and re-ordered by a retailer, wholesaler, distributor and factory, each smoothing and over-correcting in turn until upstream order swings dwarf the original signal.
This simulator makes the bullwhip effect visible: a four-echelon chain — retailer, wholesaler, distributor, factory — each forecasts the order stream it receives with exponential smoothing and replenishes toward a safety-stock target, exactly as real inventory-management systems do. Because every echelon reacts to a one-period-old, already-smoothed signal instead of true customer demand, mild and steady end-customer buying turns into wildly swinging factory production orders purely from the mechanics of forecasting and re-ordering — no external shocks required. Tune the forecast smoothing constant, the order-up-to aggressiveness and the customer's demand volatility, or inject a one-off demand shock, and watch live inventory towers and order-history bars at each stage show exactly where and how the amplification builds.
This simulation demonstrates how businesses can predict future demand for products using historical data and statistical models. It illustrates the core principles of forecasting techniques used to manage inventory levels and production schedules effectively. Understanding these methods is crucial for optimizing resource allocation within a supply chain.
2D · HTML5 Canvas 2D · 60 FPS target · runs fully client-side, no install