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Bullwhip Effect Evaluation With Indicators In Use

Author

Listed:
  • Diana Strommer

    (Szechenyi Istvan University, Hungary)

  • Peter Foldesi

    (Szechenyi Istvan University, Hungary)

Abstract

The bullwhip effect is a widely researched phenomenon. Its occurrence has a high impact on supply chain performance. Nonetheless, in practical environment a targeted analysis is less common. This results in a gap between scientific interest and practical application. Due to the high level of adaptation needed it is hard to apply the best practices. Supply chains use multiple indicators. There are typical measurements that are used by several industries tailored to their own characteristics. These metrics are crucial to support customer service. They measure the quality of the service and the estimation’s accuracy. Targeted analysis of the bullwhip effect is not that common due to limited capacity and the elusiveness of the phenomenon. A deeper investigation of the bullwhip effect can be accomplished if the existing indicator set is used as a basis. Forecast accuracy, bias and service level value are influenced by the bullwhip effect. Using these indicators for - tracking bullwhip effect as well will raise awareness and understanding of the phenomenon. This means process improvement potential using the existing resources.

Suggested Citation

  • Diana Strommer & Peter Foldesi, 2022. "Bullwhip Effect Evaluation With Indicators In Use," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 22, pages 33-48.
    • Handle: RePEc:osi:bulimm:v:22:y:2022:p:33-48
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