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The Bullwhip Effect in Different Manufacturing Paradigm: An Analysis

Author

Listed:
  • Shamila Nabi Khan

    (Lahore School of Economics, Pakistan)

  • Mohammad Ajmal Khan

    (Head of Operations Department, Dawakhana Hakim Ajmal Khan, Lahore, Pakistan)

  • Ramsha Sohail

Abstract

Slight fluctuation in the customer demand produces huge fluctuations in the inventory and production levels of the upstream member of the supply chain. This is known as demand amplification or the bullwhip effect. The bullwhip effect produces huge inefficiencies along the supply chain, captures much-needed working capital by high inventory levels and results in dissatisfied customers. Analyzing a set of nine case studies, results show that agile manufacturing is best suited to deal with a turbulent market with unpredictable demand.

Suggested Citation

  • Shamila Nabi Khan & Mohammad Ajmal Khan & Ramsha Sohail, 2014. "The Bullwhip Effect in Different Manufacturing Paradigm: An Analysis," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 17(1), pages 140-171, June.
    • Handle: RePEc:rom:econmn:v:17:y:2014:i:1:p:140-171
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    More about this item

    Keywords

    Bullwhip; Agile; Lean; Agility; Traditional; Manufacuring paradigm.;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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