Bullwhip effect phenomenon and mitigation in logistic firm's supply chain: Adaptive approach by Transborder Agency, Canada

Riffat Faizan and Adnan ul Haque

MPRA Paper from University Library of Munich, Germany

Abstract: This case study explores the bullwhip effect phenomenon and mitigation in supply chain process at Transborder Logistic Canada. Despite being one of the largest logistic chains of Canada, for two years it was facing challenges and problem in shape of bullwhip effects. The theoretical framework for present case study is based on the theory of Lee (1977) to overcome the problems in the supply chain process. "Realism" is the research philosophy undertaken to develop a cross-sectional research design to investigate the research problem at hand. Hypothetico-inductive-deductive model is used to explore research variables. Moreover, researcher used mixed method approach by circulating matrix based semi-structured survey questionnaire in different interlinked departments of Transborder Agency. The questionnaire is based on LIKERT Scale (1-to5) rating. In addition to that, open-ended interviews with the head and subordinates of various departments were commenced to explore qualitative aspects related to research problem. Results revealed that logistic firm rely heavily on demand-forecasting information through customers. There was fluctuation in demand order along with order batching, demand forecast updating, rationing and shortage game, and price fluctuation. The Polar diamond approach is considered by Transborder to effectively and efficiently deal with problem at hand and challenges that are hindering the supply chain process. Moreover, VMI, EDI, and POS are tools and techniques used to resolve different types of challenges and find a long term proper rational solution to bullwhip effect (problem at hand). Logistic supply chain inefficiency is mainly caused by bullwhip effect. The rational adoption of model can assist supply chain managers to be proactive in approach.

Keywords: Logistic Industry; Supply Chain Management; Bullwhip Effect; Polar Diamond Model (search for similar items in EconPapers)
JEL-codes: M1 O32 R40 (search for similar items in EconPapers)
Date: 2015-08-15, Revised 2015-11-05
New Economics Papers: this item is included in nep-ore
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Citations: View citations in EconPapers (3)

Published in International Journal of Supply Chain Management 4.4(2015): pp. 43-51

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