Abstract
The bullwhip effect (BWE) is the amplification of demand variability in a supply chain and can be quite costly for industry and society. In this empirical investigation of the BWE a three-stage supply chain is examined using monthly industry-level data. Time series regression equations are used to detect the BWE and its direction. Empirical evidence is found suggesting the BWE of a supply chain member is influenced by the BWE of the other members, as well as the values of inventory and inventory to sales ratios of own member and other members of supply chain. In addition, there is evidence that the direction of the BWE is not influenced by the members' horizontal positions in the network. It is shown that the wholesale BWE exhibits heteroscedastic and non-stationary behaviour; thus, making it difficult to predict over a long-horizon time period, unlike the BEW of the manufacturing and retail industries.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Business and Systems Research
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
