Decoupling paradigm of push-pull theory of oscillation in the FMCG industry

Abstract

The amplification of demand order variability germinates from distorted demand information upstream while sometimes reacting to demand-driven inventory positioning influenced by the custodians of downstream information. This studyuses factor analysis to tentatively develop a supply chain model to enhance the competence of supply chain performance in terms of responsiveness, connectivity and agility. The results of the analysis indicate that the magnitude of control on the bullwhip effect and access to economic information on demand orders in the supply chain network are associated with the modelling of the push-pull theory of oscillation on three mirror dimensions of supply chain interrelationships (inventory positioning, information sharing and electronically-enabled supply chain systems). The findings provide the perspective on managing amplification in consumer demand order variability upstream in the supply chain network while enhancing the overall efficiency of supply chain performance. This article provides insight into the use of innovative strategies and modern technology to enhance supply chain visibility through integrated systems networks.

Implementando a Lógica de Produção Puxada: Uma Pesquisa-Ação

“…À medida que esse erro de projeção de demanda é repassado upstream ao longo da cadeia produtiva (ou seja, a partir do ponto da cadeia mais próximo ao consumo em direção ao extremo inicial da cadeia onde estão os fabricantes de insumos), ele é amplificado, aumentando as consequências negativas de desbalanceamento dos inventários, gerando o conhecido efeito chicote ou bullwhip effect (Forrester, 1958;Mbhele, 2018).…”

Pull Production Implementation: An Action Research Study

“…Demand forecasting errors were magnified as they were passed on upstream along the production chain (that is, from the point on the chain closest to the consumer toward the chain's initial end, where input makers are), increasing the negative consequences of inventory imbalances, creating a bullwhip effect (Forrester, 1958;Mbhele, 2018). This situation of lengthy lead times and average inventories above average actual sales volumes as a result of the push system provides the investigation's original context.…”

A Network Maturity Mapping Tool for Demand-Driven Supply Chain Management: A Case for the Public Healthcare Sector

“…Visibility can be interpreted as the intersection between information-sharing and information quality [19]. Information sharing is an optimization strategy aimed at improving supply chain coordination and integration [32], while information quality can be described using seven characteristics: relevance, timeliness, continuous flow, validity, accuracy, intelligibility, and usefulness [33,34]. End-to-end supply chain visibility enables organisations in the supply chain network to be responsive to volatile demand [17].…”