Effects of Wholesale Competition in Supply Chains: An Analysis with Heterogeneous Decision-Makers

Yuly Arboleda () and Santiago Arango-Aramburo ()
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Yuly Arboleda: Universidad Nacional de Colombia, Faculty of Mines
Santiago Arango-Aramburo: Universidad Nacional de Colombia, Faculty of Mines

Chapter 13 in Decision-making in Humanitarian Operations, 2019, pp 291-312 from Springer

Abstract: Abstract One of the most frequent and costly problems in supply chains is known as the Bullwhip Effect, where order fluctuation amplifies as orders move higher up the supply chain. A small variation in final customer demand causes the supplier’s production to fluctuate at the other end of the chain. In this chapter, we analyze the Bullwhip Effect when competition is included at a wholesale level, considering the heterogeneity in decision rules from Agent-Based Simulation, System Dynamics, and Economic Experiments. Thereafter, the supplier invests in their capacity to complete the orders. Our results show that customers tend to inflate their orders when faced with exhausted products and different delays in the system.

Keywords: Competition; Bullwhip Effect; Decision rules; Agent-based simulation; System Dynamics; Laboratory experiments (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-319-91509-8_13

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DOI: 10.1007/978-3-319-91509-8_13

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