Many operations managers have realized the potential of guanxi to facilitate business transactions. Likewise, operations management researchers have looked at the negative impact caused by the bullwhip effect on excess inventory and the impact of the bullwhip effect on business performance. To date, however, no empirical research has integrated these research streams. Therefore, we draw on both...

In this research, a model is established to represent a supply chain, which consists of one manufacturer and two retailers. The price-sensitive demand model is considered and the price game system is built according to the rule of bounded rationality as well as the entropy theory. With the increase of the price adjustment speed, the game system may go into chaos from the stable and periodic sta...

The bullwhip effect refers to the phenomenon of demand distortion in a supply chain. By eliminating or controlling this effect, it is possible to increase product profitability. The main focus of this work is to apply a control technique, based on the divergence of system, to reduce the bullwhip effect in a single-product one echelon supply chain, in which an Order-Up-To (OUT) order policy is a...

Demand signal processing contributes significantly to the bullwhip effect and inventory instability in supply chains. Most previous studies have been attempting to evaluate the impact of available traditional forecasting methods on the bullwhip effect. Recently, some researchers have employed SPC control charts for developing forecasting and inventory control systems that can regulate the react...

Inventory replenishment rules contribute significantly to the bullwhip effect and inventory instability in supply chains. Smoothing replenishment rules have been suggested as a mitigation solution for the bullwhip effect but dampening the bullwhip effect might increase inventory instability. This paper evaluates a real-time inventory replenishment system denoted as SPC that utilizes a control c...

An undesired observation known as the bullwhip effect in supply chain management leads to excessive oscillations of the inventory and order levels. This paper presents how to quantify and mitigate the bullwhip effect by introducing model predictive control (MPC) strategy into the ordering policy for a benchmark supply chain system. Instead of quantifying the bullwhip effect with commonly used s...

Supply chain inventories are prone to fluctuations and instability. Known as the bullwhip effect, small variations in the end item demand create oscillations that amplify throughout the chain. By using system dynamics simulation, we investigate some of the structural sources of the bullwhip effect, and explore the effectiveness of information sharing to eliminate the undesirable fluctuations. E...

The bullwhip effect refers to the phenomenon where order variability increases as the orders move upstream in the supply chain. This paper provides a review of the bullwhip literature which adopts empirical, experimental and analytical methodologies. Early econometric evidence of bullwhip is highlighted. Findings from empirical and experimental research are compared with analytical and simulati...

T tendency of orders to increase in variability as one moves up a supply chain is commonly known as the bullwhip effect. We study this phenomenon from a behavioral perspective in the context of a simple, serial, supply chain subject to information lags and stochastic demand. We conduct two experiments on two different sets of participants. In the first, we find the bullwhip effect still exists ...