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On bullwhip in supply chains - historical review, present practice and expected future impact

Geary, S., Disney, Stephen Michael and Towill, Denis Royston 2006. On bullwhip in supply chains - historical review, present practice and expected future impact. International Journal of Production Economics 101 (1) , pp. 2-18. 10.1016/j.ijpe.2005.05.009

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Abstract

Demand amplification (or “bullwhip” as it is now called) is not a new phenomenon, since evidence of its existence has been recorded at least as far back as the start of the 20th century and is well known to economists. Yet industry worldwide still has to cope with bullwhip measured not just in terms of the 2:1 amplification which is frequently quoted, but sometimes it is as high as 20:1 from end-to-end in the supplychain. This can be very costly in terms of capacity on-costs and stock-out costs on the upswing and stockholding and obsolescence costs on the downswing. In this paper we have identified 10 published causes of bullwhip, all of which are capable of elimination by re-engineering the supplychain. We offer evidence on the present “health” of a family of supplychains, and pinpoint much good practice. This is in anticipation that such excellence will become normative in the near future as the learning experience gathers momentum and provided that human factors are properly addressed.

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 > HD28 Management. Industrial Management
H Social Sciences > HE Transportation and Communications
H Social Sciences > HF Commerce
Uncontrolled Keywords: Bullwhip reduction; Supply chains; BPR
Publisher: Elsevier
ISSN: 0925-5273
Date of First Compliant Deposit: 30 March 2016
Last Modified: 04 Jun 2017 11:42
URI: http://orca.cf.ac.uk/id/eprint/41086

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