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Empirical Assessment of Bullwhip Effect in Supply Networks

Author

Listed:
  • Dazhong Wu

    (University of the District of Columbia, USA)

  • Joe Teng

    (Troy University, USA)

  • Sergey Ivanov

    (University of the District of Columbia, USA)

  • Julius Anyu

    (University of the District of Columbia, USA)

Abstract

Previous empirical studies on bullwhip effects treat each industry or firm as isolated from its supply chain network. In this paper, the authors are interested in the role played by supply chain relational connection in moderating how demand variability signal is transmitted upstream. The paper conducts an empirical study based on a panel data of 55 manufacturing industries and 9 wholesale industries. The regression analysis shows that demand variability is propagated through supply chain upward and the transmission is influenced by the structural relationship between suppliers and customers, which is measured by customer-base concentration and customer interconnectedness. On the other hand, customer demand variability has a greater impact on industries with less concentrated customer base or with less interconnected customers.

Suggested Citation

  • Dazhong Wu & Joe Teng & Sergey Ivanov & Julius Anyu, 2021. "Empirical Assessment of Bullwhip Effect in Supply Networks," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global Scientific Publishing, vol. 14(2), pages 69-87, April.
    • Handle: RePEc:igg:jisscm:v:14:y:2021:i:2:p:69-87
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