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Reducing the bullwhip effect: Looking through the appropriate lens

Reducing the bullwhip effect: Looking through the appropriate lens

Towill, Denis R., Zhou, Li ORCID: 0000-0001-7132-5935 and Disney, Stephen M. (2007) Reducing the bullwhip effect: Looking through the appropriate lens. International Journal of Production Economics, 108. pp. 444-453. ISSN 0925-5273 (doi:https://doi.org/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
Uncontrolled Keywords: bullwhip, variance, shock behaviour, resonance, filtering
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Faculty / Department / Research Group: Faculty of Business > Department of Systems Management & Strategy
Faculty of Business > Supply Chain Management Research Group
Faculty of Business > Networks and Urban Systems Centre (NUSC) > Supply Chain Management Research Group
Related URLs:
Last Modified: 14 Oct 2016 09:13
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
URI: http://gala.gre.ac.uk/id/eprint/5274

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