Abstract
The bullwhip effect refers to the phenomenon of the increase in demand variability from supply chain downstream members to upstream members. This effect is critically important for the different sectors involved in a supply chain and is one of the main causes of inefficiency, material waste, and low sustainability in supply chain management. In order to help minimize the bullwhip effect and achieve sustainable development in a supply chain, this study identifies the influential factors of the bullwhip effect in a supply chain and the interactive relationships among them. A bi-level bullwhip effect analysis model was established to evaluate the causes of the bullwhip effect at different levels by using a social network analysis approach. Furthermore, to help achieve efficient and sustainable development, the implications of mitigating the impacts of the bullwhip effect in a supply chain were explored based on the results of the inter-relationships analysis among the contributing factors of the bullwhip effect.
Highlights
Globalization has complicated the supply chain of manufacturing with the involvement of various stakeholders and multiple influential factors
The demand uncertainty and variability increase from downstream members to upstream members in the supply chain, which is called the bullwhip effect (BWE). This effect causes tremendous waste in supply chains due to higher inventory holding costs, manufacturing costs, and lower customer service level [2], which are the major causes of inefficiencies in supply chain management [3]
As this study focused on how many other factors can influence one certain factor, the binary values could be utilized to describe the relationships in this study
Summary
Globalization has complicated the supply chain of manufacturing with the involvement of various stakeholders and multiple influential factors. Suppliers and retailers have observed that, as the variation of product demand increases, there is a considerable fluctuation of inventory and backorder levels across the supply chain [1]. The demand uncertainty and variability increase from downstream members to upstream members in the supply chain, which is called the bullwhip effect (BWE). This effect causes tremendous waste in supply chains due to higher inventory holding costs, manufacturing costs, and lower customer service level [2], which are the major causes of inefficiencies in supply chain management [3]. Sustainability within the supply chain has become one of the areas receiving considerable interest [4]. Blockchain technology has been applied to achieve a sustainable supply chain [5]
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