Journal ArticleDOI
Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information
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In this article, the authors quantify the effect of the bullwhip effect on simple two-stage supply chains consisting of a single retailer and a single manufacturer and demonstrate that the effect can be reduced by centralizing demand information.Abstract:
An important observation in supply chain management, known as the bullwhip effect, suggests that demand variability increases as one moves up a supply chain. In this paper we quantify this effect for simple, two-stage supply chains consisting of a single retailer and a single manufacturer. Our model includes two of the factors commonly assumed to cause the bullwhip effect: demand forecasting and order lead times. We extend these results to multiple-stage supply chains with and without centralized customer demand information and demonstrate that the bullwhip effect can be reduced, but not completely eliminated, by centralizing demand information.read more
Citations
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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.
Journal ArticleDOI
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.
Journal ArticleDOI
Supply chain coordination: Perspectives, empirical studies and research directions
TL;DR: A systematic literature review on supply chain coordination is presented in this paper, which reports and reviews various perspectives on SC coordination issues, understand and appreciate various mechanisms available for coordination and identify the gaps existing in the literature.
Journal ArticleDOI
Flow Coordination and Information Sharing in Supply Chains: Review, Implications, and Directions for Future Research
Funda Sahin,E. Powell Robinson +1 more
TL;DR: This research attempts to help fill gaps in the current body of knowledge in the value of information sharing and physical flow coordination in the e-business arena by surveying prior research in the area, categorized in terms of information shares and flow coordination.
Journal ArticleDOI
Supply chain collaboration: making sense of the strategy continuum
TL;DR: In this paper, the authors classify collaboration initiatives using a conceptual water-tank analogy, and discuss their dynamic behavior and key characteristics, concluding that the effectiveness of supply chain collaboration relies upon two factors: the level to which it integrates internal and external operations, and the efforts are aligned to the supply chain settings in terms of the geographical dispersion, the demand pattern, and product characteristics.
References
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Journal ArticleDOI
Information distortion in a supply chain: the bullwhip effect
TL;DR: 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.
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 Article
The Bullwhip Effect in Supply Chains
TL;DR: In this article, the authors identify four major causes of the bullwhip effect: demand forecast updating, rationing, price fluctuation, and shortage games, and they suggest several ways in which companies can counteract the effect.
Journal ArticleDOI
Misperceptions of Feedback in Dynamic Decision Making
TL;DR: In this paper, the behavior of decision makers to the dynamics of an industry or the macroeconomy is studied. But, despite the success of experimental techniques in the domain of the individual and small group, there has been comparatively little work relating the behaviour of decision-makers to the dynamic dynamics of larger organizations such as an industry.