The Impact of Servicization of Manufacturing Firms on Bullwhip Effects

Jiang Shenyang, Jiang Zhibin, Niu Yimeng and Wu Jing

Foundations and Trends(R) in Technology, Information and Operations Management, 2023, vol. 16, issue 3-4, 304-317

Abstract: Service-oriented economies have triggered manufacturing firms to increasingly integrate services into their businesses. This section delves into the impact of servicization on two key bullwhip effects: the felt bullwhip, representing demand variability, and the intra-firm bullwhip, reflecting demand distortion. Manufacturers typically offer services complementing product sales, like maintenance and repair, and those replacing product sales, like machine hours. Employing text mining techniques, two service categories in 10-K reports are identified. Complementing services initially lead to a decrease in demand variability, while substituting services subsequently results in diminished demand distortion.

Keywords: Supply Chain Management; Service Logistics and Product Support; New Product and Service Design (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:now:fnttom:0200000106-8

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