The bullwhip effect, demand uncertainty, and cost structure

نویسندگان

چکیده

Abstract The firm‐level bullwhip effect is the amplification of demand uncertainty along a supply chain—that is, fluctuations in production (for manufacturing firms) or purchases from suppliers retailers wholesalers) firm tend to be greater than its fluctuations. We predict that ratio (a proxy for effect) amplifies relation between and cost structure. expect this amplifying because determines extent which translates into purchases, which, turn, affects Using data public US firms over 1990–2020 period, we find results consistent with our prediction. Specifically, both negative elasticity sector positive two retail/wholesale sectors are stronger higher ratios. contribute accounting literature on structure by highlighting important role decisions. This article protected copyright. All rights reserved.

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ژورنال

عنوان ژورنال: Contemporary Accounting Research

سال: 2023

ISSN: ['1911-3846', '0823-9150']

DOI: https://doi.org/10.1111/1911-3846.12908