Metrics for bullwhip effect analysis

S Cannella, A P Barbosa-Póvoa, J M Framinan and S Relvas
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S Cannella: Technical University of Lisbon, Porto Salvo, Portugal
A P Barbosa-Póvoa: Technical University of Lisbon, Porto Salvo, Portugal
J M Framinan: University of Seville, Seville, Spain
S Relvas: Technical University of Lisbon, Porto Salvo, Portugal

Journal of the Operational Research Society, 2013, vol. 64, issue 1, 1-16

Abstract: A bullwhip measurement system based on a two-criterion assessment—‘internal process efficiency’ and ‘customer service level’—is developed in this paper. The framework is designed to assess both individual (single member) and systemic (whole supply chain) performances. Data collection and calculation methods, update and monitoring mechanisms, as well as related procedures for each metric used, are detailed. A comparative analysis with a recent work by Barlas and Gunduz is performed, showing that the adoption of the proposed performance measurement system can help academics and practitioners to better understand, study and avoid the bullwhip effect. Such analysis also provides evidence on the relevance of considering when analysing the bullwhip effect in supply chains, the ‘customer importance’ aspect that is often forgotten in the published literature.

Date: 2013
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