Information Transmission and the Bullwhip Effect: An Empirical Investigation

Bray, Robert Louis; Mendelson, Haim

doi:10.2139/ssrn.2336301

Cited by 141 publications

(30 citation statements)

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“…Other well-cited empirical works in the supply chain management area include topics on purchase operations and e-procurement Olson 2002, Mithas andJones 2007), the bullwhip effect (Cachon et al 2007, Bray andMendelson 2012), the effect of supply disruptions on stock market and firm performance (Hendricks and Singhal 2005a, b), buyer-supplier relationships and communications (Terwiesch et al 2005, Jira and, and the effect of adopting a buyonline, pickup-in-store distribution strategy (Gallino and Moreno 2014). The questions that study both the buyers' and the suppliers' decisions are potentially subject to endogeneity issues, as one side's decisions can affect those of the other side.…”

Section: Supply Chain Management (Onlinementioning

confidence: 99%

OM Forum—Causal Inference Models in Operations Management

Lim

Reza

et al. 2017

M&SOM

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Abstract. Operations management (OM) researchers have traditionally focused on developing normative mathematical models that prescribe what managers and firms should do. Recently, there has been increased interest in understanding what managers and firms actually do and the factors that drive these decisions. To advance this understanding, empirical investigation using causal inference models is critical. However, in many contexts, the ability to obtain causal inferences is fraught with the challenges of endogeneity and selection bias. This paper describes five empirical tools that have been widely used in economics to address these challenges and how they can be adopted by OM researchers. We also present an example that illustrates how the various attributes of big data-variety, velocity, and volume-can be useful in addressing the endogeneity bias.

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Section: Supply Chain Management (Onlinementioning

confidence: 99%

OM Forum—Causal Inference Models in Operations Management

Lim

Reza

et al. 2017

M&SOM

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“…Bray and Mendelson analysed the bullwhip by information transmission lead time based on public companies' data from years 1974-2008. Shorter reaction times cause significantly more troubles regarding bullwhip [28].…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of a Three-Stage Supply Chain with Level Constraints

Buchmeister¹,

Friscic²,

Lаlić³

et al. 2012

Int. j. simul. model.

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Many companies have enjoyed a significant success due to the unique ways in which they have organized their supply chains, which are one of the best ways to compete in today's marketplaces. For make-to-stock production systems the production plans and activities are based on demand forecasting. This is one of the key causes of the bullwhip effect. The bullwhip effect (BE) is the inherent increase in demand fluctuation up the supply chain. In the paper we experimented (by simulating) with a special case of a simple three-stage supply chain using seasonal and deseasonalized time series of the market demand data in order to identify, illustrate and discuss the impacts of different level constraints on the BE. The results are presented for different overall equipment effectiveness (OEE) and constrained inventory policies. At higher OEE level there is less variability in production processes, but at inventory limitations the impact is more complex.

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“…CPFR captures the operational advantages of VMI and adds collaboration mechanisms to facilitate the exchange of information in different echelons of the SC (Cassivi, 2006). Bray & Mendelson (2012), Trapero, Korentzes, & Fildes (2012), Li (2013), Sari (2015), Barkataki & Zeineddine (2015) 2. Improved demand forecasting Wright & Yuan (2008), Ali, Boylan, & Syntetos (2012), Trapero et al (2012), Dong et al (2014), Sari (2015), Xu, Dong, &Xia (2015), Nagashima et al (2015) 3.…”

Section: Replenishment (Cpfr) and Vendor Managedmentioning

confidence: 99%

<b>The importance of trust and collaboration between companies to mitigate the bullwhip effect in supply chain management

et al. 2017

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ABSTRACT. The aim of the paper is to develop a theoretical construct about the mitigation of the bullwhip effect, considering trust and collaboration in managing the supply chain. The study presents a qualitative research based on the systematic literature review, which is tested through field research, involving companies in the medical and hospital area belonging to the same supply chain. The bullwhip effect has been observed throughout the industry for many years. Several academic studies have assigned to operating causes the reason for its occurrence. Few studies have focused behavioral causes. Through this study, it appears that affective trust (honesty, mutual understanding, credibility, respect and compliance) and trust in the competence (knowledge/technique, commitment in the relationship) are both necessary for keeping the relationship, but without affective trust, the relationship does not develop. Moreover, an organizational culture based on trust and collaboration exchange, and knowledge related to processes and technology among businesses, contributing to the joint planning and collaboration in the information sharing occurs. Thus, aspects of behavior toward partners of supply chain companies can mitigate the operational causes of the bullwhip effect by improving information and knowledge sharing, demand forecasting, replenishment policy, and reducing the risk coordination among the chain participants.Keywords: trust, collaboration, bullwhip effect, supply chain management.A importância da confiança e colaboração entre empresas para mitigação do efeito chicote na gestão da cadeia de suprimentos RESUMO. O objetivo do artigo é elaborar um construto teórico de mitigação do efeito chicote considerando a confiança e a colaboração no gerenciamento da cadeia de suprimentos. Este estudo apresenta uma pesquisa qualitativa com base na revisão sistemática da literatura em que o construto é testado por meio de um estudo de caso, envolvendo empresas da área médico-hospitalar pertencentes a uma mesma cadeia de suprimentos. O efeito chicote tem sido observado em toda a indústria, durante muitos anos. Vários trabalhos acadêmicos têm investigado esse tema e atribuído às causas operacionais a razão de sua ocorrência. Poucos trabalhos têm se dedicado às causas comportamentais. Este estudo comprova que a confiança afetiva (honestidade, entendimento mútuo, credibilidade, respeito e compliance) e a confiança no conhecimento/técnica e comprometimento no relacionamento são igualmente necessárias para o relacionamento com parceiros, mas se não houver a confiança afetiva, o relacionamento não se desenvolve. Assim, os aspectos do comportamento em relação aos parceiros das empresas de uma cadeia de suprimentos podem mitigar as causas operacionais do efeito chicote, melhorando o compartilhamento de informações e conhecimento, a previsão de demanda, política de reabastecimento e diminuindo o risco de coordenação entre os participantes da cadeia.Palavras-chave: confiança, colaboração, efeito chicote, gestão da cadeia de supriment...

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Information Transmission and the Bullwhip Effect: An Empirical Investigation

Cited by 141 publications

References 0 publications

OM Forum—Causal Inference Models in Operations Management

OM Forum—Causal Inference Models in Operations Management

Analysis of a Three-Stage Supply Chain with Level Constraints

<b>The importance of trust and collaboration between companies to mitigate the bullwhip effect in supply chain management

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