The bullwhip effect in supply chains: a study of contingent and incomplete literature

Abstract

The bullwhip effect (BWE) describes a phenomenon that involves the increasing amplification of demand variability along a supply chain (SC). The BWE has been a subject that has received continuous attention from researchers over the past 15 years and is a concern for SC managers because it is a major cause of efficiency and effectiveness loss in SCs. Information sharing between actors in an SC is usually considered to be one of the primary means to minimise the BWE. Approximately 50 articles published in major journals on these topics are studied in this article. An analytical framework is used to highlight the contingent character of the conclusions proposed by the authors. In this review, we identify the existence of significant gaps in the literature, especially concerning the BWE when it occurs in the productive part of the SC.

Keywords:

• supply chain
• bullwhip effect
• information sharing
• value of information

Notes

1. In the classical reorder point model, the lead time is fixed. In the VMI, the real-time knowledge of the inventory allows management to organise efficient and effective delivery rounds according to a range of values for the reorder points. This issue is not clearly stated in the literature (or is hidden by an oversized lead time).