Journal ArticleDOI
Information distortion in a supply chain: the bullwhip effect
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TLDR
The authors analyzes four sources of the bullwhip effect: demand signal processing, rationing game, order batching, and price variations, and shows that the distortion tends to increase as one moves upstream.Abstract:
(This article originally appeared in Management Science, April 1997, Volume 43, Number 4, pp. 546-558, published by The Institute of Management Sciences.)
Consider a series of companies in a supply chain, each of whom orders from its immediate upstream member. In this setting, inbound orders from a downstream member serve as a valuable informational input to upstream production and inventory decisions. This paper claims that the information transferred in the form of "orders" tends to be distorted and can misguide upstream members in their inventory and production decisions. In particular, the variance of orders may be larger than that of sales, and distortion tends to increase as one moves upstream-a phenomenon termed "bullwhip effect." This paper analyzes four sources of the bullwhip effect: demand signal processing, rationing game, order batching, and price variations. Actions that can be taken to mitigate the detrimental impact of this distortion are also discussed.read more
Citations
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Defining supply chain management
John T. Mentzer,William DeWitt,James S. Keebler,Soonhong Min,Nancy W. Nix,Carlo D. Smith,Zach G. Zacharia +6 more
TL;DR: A management construct cannot be used effectively by practitioners and researchers if a common agreement on its definition is lacking as discussed by the authors, which is the case with the term "supply chain management".
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Arcs of integration: an international study of supply chain strategies
TL;DR: In this article, the authors investigated supplier and customer integration strategies in a global sample of 322 manufacturers and found that the widest degree of arc of integration with both suppliers and customers had the strongest association with performance improvement.
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The Value of Information Sharing in a Two-Level Supply Chain
TL;DR: In this article, a simple two-level supply chain with nonstationary end demands is analyzed and the authors show that the value of demand information sharing can be quite high, especially when demands are significantly correlated over time.
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Perspectives in supply chain risk management
TL;DR: In this paper, the authors present a review of various quantitative models for managing supply chain risks and relate various supply chain risk management strategies examined in the research literature with actual practices, highlighting the gap between theory and practice, and motivate researchers to develop new models for mitigating supply chain disruptions.
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The impact of supply chain management practices on competitive advantage and organizational performance
TL;DR: In this paper, the authors conceptualized and developed five dimensions of SCM practice (strategic supplier partnership, customer relationship, level of information sharing, quality information sharing and postponement) and tested the relationships between SCM practices, competitive advantage, and organizational performance.
References
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Journal ArticleDOI
Modeling managerial behavior: misperceptions of feedback in a dynamic decision making experiment
TL;DR: In this paper, the authors report an experiment on the generation of macrodynamics from microstructure in a common managerial context, where subjects manage a simulated inventory distribution system which contains multiple actors, feedbacks, nonlinearities, and time delays.
Journal ArticleDOI
The bullwhip effect in supply chains
TL;DR: The bullwhip effect occurs when the demand order variabilities in a supply chain are amplified as they moved up the supply chain this article, which can lead to tremendous inefficiencies: excessive inventory investment, poor customer service, lost revenues, misguided capacity plans, inactive transportation, and missed production schedules.
Journal ArticleDOI
Optimal Policies for a Multi-Echelon Inventory Problem
Andrew J. Clark,Herbert E. Scarf +1 more
TL;DR: The problem of determining optimal purchasing quantities in a multi-installation model of this type, which arises when there are several installations, is considered.
Book
Stochastic models in operations research
TL;DR: This course provides an introduction to the modeling and analysis of various random phenomena occurring in operations research and businesses such as inventory theory, queueing theory, genetics, demography, epidemiology, competing populations.