Small changes in consumer demand can result in large variations in orders placed upstream. Eventually, the network can oscillate in very large swings as each organization in the supply chain seeks to solve the problem from its own perspective. This phenomenon is known as the bullwhip effectThe supplier then orders 20 units from the manufacturer; allowing them to buy in bulk so they have enough stock to guarantee timely shipment of goods to the retailer. The manufacturer then receives the order and then orders from their supplier in bulk; ordering 40 units to ensure economy of scale in production to meet demand. Now 40 units have been produced for a demand of only 8 units; meaning the retailer will have to increase demand by dropping prices or finding more customers by marketing and advertising.

What contributes to the bullwhip effect?There are many factors said to cause or contribute to the bullwhip effect in supply chains; the following list names a few: Disorganizationbetween each supply chain link; with ordering larger or smaller amounts of a product than is needed due to an over or under reaction to the supply chain beforehand. Lack of communicationbetween each link in the supply chain makes it difficult for processes to run smoothly. Managers can perceive a product demand quite differently within different links of the supply chain and therefore order different quantities. Free return policies; customers may intentionally overstate demands due to shortages and then cancel when the supply becomes adequate again, without return forfeit retailers will continue to exaggerate their needs and cancel orders; resulting in excess material. Order batching; companies may not immediately place an order with their supplier; often accumulating the demand first. Companies may order weekly or even monthly. This creates variability in the demand as there may for instance be a surge in demand at some stage followed by no demand after. Price variations special discounts and other cost changes can upset regular buying patterns; buyers want to take advantage on discounts offered during a short time period, this can cause uneven production and distorted demand information. Demand information relying on past demand information to estimate current demand information of a product does not take into account any fluctuations that may occur in demand over a period of time.

Life Cycle AssessmentLife-Cycle Assessment (LCA) also called Life-Cycle Analysis is a tool for examining the total environmental impact of a product through every step of its life from obtaining raw materials all the way through making it in a factory, selling it in a store, using it in the workplace or at home, and disposing of it.The main stages of the life cycle usually follows the cradle-to-grave model

Life Cycle Analysiscan be as simple as making a basic matrix of these main stages against the factors like in the following graphic (click to enlarge):

Generally, a LCA consists of four main activities:1.Goal definition (ISO 14040): The basis and scope of the evaluation are defined.2.Inventory Analysis (ISO 14041): Create a process tree in which all processes from raw material extraction through waste water treatment are mapped out and connected and mass and energy balances are closed (all emissions and consumptions are accounted for). 3.Impact Assessment (ISO 14042): Emissions and consumptions are translated into environmental effects. The are environmental effects are grouped and weighted. 4.Improvement Assessment/Interpretation (ISO 14043): Areas for improvement are identified.