Causes of the bullwhip effect: a systematic review and categorization of its causes

Manuel Brauch, Matin Mohaghegh and Andreas Größler

Management Research Review, 2024, vol. 47, issue 7, 1127-1149

Abstract: Purpose - One pertinent dynamic phenomenon in supply chains is the amplification of order variance, i.e. the bullwhip effect. Its continued significance is underscored in contemporary empirical research. While numerous publications have pinpointed various causes of the bullwhip effect, there remains a gap in their systematic consolidation. The purpose of this paper is to compile a comprehensive list of the causes of the bullwhip effect from existing literature and categorize them appropriately. Design/methodology/approach - This study conducts a systematic literature review to offer a comprehensive overview of bullwhip effect causes addressed in the existing literature. The identified causes are categorized using a qualitative content analysis approach. Findings - The study shows the diversity of the causes of the bullwhip effect and their interdependencies. In addition, this study demonstrates that, at the highest level of aggregation, causes of the bullwhip effect can be classified into four main categories: causes inherent in the system structure, causes related to uncertainty, causes related to misaligned incentives and causes related to inadequate cognition of the situation. Originality/value - The work provides an extensive overview and categorization of bullwhip effect causes, offering valuable insights for both researchers and practitioners seeking a deeper understanding of this phenomenon. In addition, it underscores managerial implications and highlights future research opportunities.

Keywords: Bullwhip effect; Forrester effect; Supply chain management; Systematic review (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:mrrpps:mrr-05-2023-0392

DOI: 10.1108/MRR-05-2023-0392

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