BULLWHIP EFFECT EVALUATION WITH INDICATORS IN USE

Diana Strommer () and Peter Foldesi ()
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Diana Strommer: Szechenyi Istvan University, Hungary
Peter Foldesi: Szechenyi Istvan University, Hungary

Business Logistics in Modern Management, 2022, vol. 22, 33-48

Abstract: The bullwhip effect is a widely researched phenomenon. Its occurrence has a high impact on supply chain performance. Nonetheless, in practical environment a targeted analysis is less common. This results in a gap between scientific interest and practical application. Due to the high level of adaptation needed it is hard to apply the best practices. Supply chains use multiple indicators. There are typical measurements that are used by several industries tailored to their own characteristics. These metrics are crucial to support customer service. They measure the quality of the service and the estimation’s accuracy. Targeted analysis of the bullwhip effect is not that common due to limited capacity and the elusiveness of the phenomenon. A deeper investigation of the bullwhip effect can be accomplished if the existing indicator set is used as a basis. Forecast accuracy, bias and service level value are influenced by the bullwhip effect. Using these indicators for - tracking bullwhip effect as well will raise awareness and understanding of the phenomenon. This means process improvement potential using the existing resources.

Keywords: bullwhip effect; forecast accuracy; forecast bias; service level (search for similar items in EconPapers)
Date: 2022
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