IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The effects of the lack of coordination within the supply chain

  • Carmen Balan

    ()

    (Academy of Economic Studies, Bucharest)

The present article refers to the bullwhip effect that negatively influences the supply chain performance. This effect is experienced by various industries, from fast moving consumer goods to IT products. The consequences for the supply chain members are the following: increased costs, lower profitability, longer lead times and lower product availability. The main factors that generate this effect are the types of incentives provided by suppliers to the downstream customers, the information distortion, the order placing practices, the pricing policies encouraging the forward buying and the specific behavior of the supply chain members focused on local optimization. The only way in which supply chain members may eradicate the bullwhip effect is to enhance coordination among the subsequent stages. Some of the strategies to be considered are the alignment of goals and objectives, data sharing among members, single stage control of replenishment, strategies for the improvement of the operational performance, stabilizing orders with appropriate pricing strategies and building strategic partnerships and trust. The incidence and amplitude of the bullwhip effect may be reduced by strategies and decisions that are harmonized along the stages of the supply chain. The key words in the endeavor to diminish the bullwhip effect are cooperation, coordination, communication and trust.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.amfiteatrueconomic.ase.ro/arhiva/pdf/no24/articol_fulltext_pag26.pdf
Download Restriction: no

Article provided by Academy of Economic Studies - Bucharest, Romania in its journal The AMFITEATRU ECONOMIC journal.

Volume (Year): 10 (2008)
Issue (Month): 24 (June)
Pages: 26-40

as
in new window

Handle: RePEc:aes:amfeco:v:10:y:2008:i:24:p:26-40
Contact details of provider: Postal: 6 ROMANA PLACE, 70167 - BUCHAREST
Phone: 0040-01-2112650
Fax: 0040-01-3129549
Web page: http://amfiteatrueconomic.ase.ro/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. 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.
  2. Hau L. Lee & Kut C. So & Christopher S. Tang, 2000. "The Value of Information Sharing in a Two-Level Supply Chain," Management Science, INFORMS, vol. 46(5), pages 626-643, May.
  3. John D. Sterman, 1989. "Modeling Managerial Behavior: Misperceptions of Feedback in a Dynamic Decision Making Experiment," Management Science, INFORMS, vol. 35(3), pages 321-339, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:aes:amfeco:v:10:y:2008:i:24:p:26-40. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valentin Dumitru)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.