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Reducing the bullwhip effect: looking through the appropriate lens

Towill, Denis Royston, Zhou, Li and Disney, Stephen Michael 2007. Reducing the bullwhip effect: looking through the appropriate lens. International Journal of Production Economics 108 (1-2) , pp. 444-453. 10.1016/j.ijpe.2006.12.024

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Abstract

Demand amplification, now frequently referred to as “bullwhip”, is potentially a very costly phenomenon. It can lead to stock-outs, large and expensive capacity utilisation swings, lower quality products, and considerable production/transport on-costs as deliveries are ramped up and down at the whim of the supply chain. However, the detection of bullwhip depends on which “lens” is used. This in turn depends on the background and requirements of various “players” within the value stream. To gain insight into this scenario we exploit a relatively simple replenishment model. Because new and novel analytic solutions have been derived for all important performance metrics, comparison of the competing bullwhip measures is thereby greatly streamlined. In the complex real world the likelihood is that supply chains will generate even greater inconsistency between alternative variance, shock, and filter lens viewpoints.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce
Uncontrolled Keywords: Bullwhip; Variance; Shock behaviour; Resonance; Filtering
Additional Information: Pdf uploaded in accordance with the publisher’s policy at http://www.sherpa.ac.uk/romeo/issn/0925-5273/ (accessed 05/01/2015)
Publisher: Elsevier
ISSN: 0925-5273
Related URLs:
Date of First Compliant Deposit: 30 March 2016
Last Modified: 14 Oct 2017 10:23
URI: http://orca.cf.ac.uk/id/eprint/38103

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