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The analysis of the Bullwhip effect on the supply chain management of perishable products

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  • Rahal, Imen
  • Elloumi, Abdelkarim

Abstract

Wholesale Market is a distributor of vegetables and fruits that places orders for products to suppliers and then distributes them to each retailer, where the distribution destinations that supply vegetables and fruits, Wholesale Market is present in the region of Gafsa, Tunisia. In meeting the demands of retailers, the company exceeds the number of orders to suppliers by 9% to 40% depending on the type of product to anticipate the defects / damage because the product is perishable or not durable. The consideration of overestimating the order was found to have an impact on the bullwhip effect or an increase in demand variability. Therefore, the objective of this study is to determine the value of the bullwhip effect at the distributor, retailer, and product category retailer level, so that the value of the bullwhip effect is the basis for determining the improvement recommendations to overcome the bullwhip effect +problem in the company. The results of the calculations show that the bullwhip effect is 90% at the distributor level, 70.99% at the retailer level, and 70.66% at the retailer level of the product category. The products and categories that experience a bullwhip effect where the BE value is greater than the parameter is influenced by a significant difference between demand and orders, while the products and categories that are in a stable position are influenced by the difference between demand and orders that are not significant so that the BE value does not exceed the parameter.

Suggested Citation

  • Rahal, Imen & Elloumi, Abdelkarim, 2022. "The analysis of the Bullwhip effect on the supply chain management of perishable products," MPRA Paper 117992, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117992
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    File URL: https://mpra.ub.uni-muenchen.de/117992/1/Bullwhip%202023.pdf
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    References listed on IDEAS

    as
    1. Zotteri, Giulio, 2013. "An empirical investigation on causes and effects of the Bullwhip-effect: Evidence from the personal care sector," International Journal of Production Economics, Elsevier, vol. 143(2), pages 489-498.
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    3. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 1997. "Information Distortion in a Supply Chain: The Bullwhip Effect," Management Science, INFORMS, vol. 43(4), pages 546-558, April.
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    5. Y Barlas & B Gunduz, 2011. "Demand forecasting and sharing strategies to reduce fluctuations and the bullwhip effect in supply chains," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(3), pages 458-473, March.
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    Cited by:

    1. RAHAL, Imen, 2024. "The Supply Chain Management for Perishables Products : A Literature Review," MPRA Paper 119193, University Library of Munich, Germany.

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    More about this item

    Keywords

    bullwhip effect; Wholesale Market; distributor; retailer; perishable products.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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