Bullwhip Effect Measurement and Its Implications
نویسندگان
چکیده
The bullwhip effect, or demand information distortion, has been a subject of both theoretical and empirical studies in the operations management literature. In this paper, we develop a simple set of formulas that describe the traditional bullwhip measure as a combined outcome of several important drivers, such as finite capacity, batch-ordering, and seasonality. Our modeling framework is descriptive in nature as it features certain plausible approximations that are commonly employed in practical inventory systems. The results are nonetheless compelling and can be used to explain various conflicting observations in previous empirical studies. Building on the theoretical framework, we discuss the managerial implications of the bullwhip measurement. We show that the measurement can be completely noninformative about the underlying supply chain cost performance if it is not linked to the operational details (such as decision intervals and leadtimes). Specifically, we show that an aggregated measurement over relatively long time periods can mask the operational-level bullwhip. In addition, we show that masking also exists under product or location aggregation in some illustrative cases.
منابع مشابه
Small sample uncertainty aspects in relation to bullwhip effect measurement
The bullwhip effect as a concept has been known for almost half a century starting with the Forrester effect. The bullwhip effect is ‘‘allegedly’’ observed in many supply chains, and it is generally accepted as a potential malice. Despite this the bullwhip effect still seems to be first and foremost a conceptual phenomenon. Some even simply denies that the phenomenon exists at all in practice. ...
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ورودعنوان ژورنال:
- Operations Research
دوره 60 شماره
صفحات -
تاریخ انتشار 2012