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INFORMS Transactions on Education
Article . 2009 . Peer-reviewed
Data sources: Crossref
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INFORMS Transactions on Education
Article
License: CC BY NC ND
Data sources: UnpayWall
SSRN Electronic Journal
Article . 2007 . Peer-reviewed
Data sources: Crossref
DBLP
Article . 2009
Data sources: DBLP
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Exploring the Bullwhip Effect by Means of Spreadsheet Simulation

Authors: Boute, Robert; Lambrecht, Marc;

Exploring the Bullwhip Effect by Means of Spreadsheet Simulation

Abstract

One of the main supply chain deficiencies is the bullwhip effect: Demand fluctuations increase as one moves up the supply chain from retailer to manufacturer. The beer distribution game is widely known for illustrating these supply chain dynamics in class. In this paper we present a spreadsheet exploring the two key causes of the bullwhip effect: demand forecasting and the type of ordering policy. We restrict our attention to a single product two-echelon system and illustrate how tuning the parameters of the replenishment policy induces or reduces the bullwhip effect. We also demonstrate how bullwhip reduction (dampening the order variability) may have an adverse impact on inventory holdings or customer service. The spreadsheet can be used to help students gain insight into how inventory control policies and forecasting influence the magnitude of the bullwhip effect and the quality of customer service.

Country
Belgium
Keywords

Bullwhip effect, Forecasting techniques, 15 Commerce, Management, Tourism and Services, 38 Economics, Replenishment rules, Beer distribution game, 35 Commerce, management, tourism and services, 39 Education, Spreadsheet simulation, 14 Economics

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    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
20
Top 10%
Top 10%
Average
Green
gold