A Counterexample for the Bullwhip Effect in a Supply Chain

Toshiji Kawagoe () and Shihomi Wada ()
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Toshiji Kawagoe: Future University-Hakodate
Shihomi Wada: Graduate School Systems Information Science

A chapter in Artificial Economics, 2006, pp 103-111 from Springer

Abstract: Summary In our experiment of a supply chain using Beer Game, to identify the cause of bullwhip effect, the number of firms in a supply chain (two or four firms), and the length of the delay in shipping between firms (one or three weeks) are controlled and compared in the multiagent simulations. We found a counterexample for bullwhip effect such that inventory level of upstream firm was not always larger than that of downstream firm. In addition, contrary to our intuition, such a counterexample was frequently observed under the condition that (1) the number of firms in a supply chain was many, and that (2) the length of delay was rather longer.

Keywords: Supply Chain; Inventory Level; Inventory Strategy; Bullwhip Effect; Downstream Firm (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnechp:978-3-540-28547-2_9

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DOI: 10.1007/3-540-28547-4_9

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