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Does the ripple effect influence the bullwhip effect? An integrated analysis of structural and operational dynamics in the supply chain

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  • Alexandre Dolgui
  • Dmitry Ivanov
  • Maxim Rozhkov

Abstract

The ripple effect refers to structural dynamics and describes a downstream propagation of the downscaling in demand fulfilment in the supply chain (SC) as a result of a severe disruption. The bullwhip effect refers to operational dynamics and amplifies in the upstream direction as ordering oscillations. Being interested in uncovering if the ripple effect can be a driver of the bullwhip effect, we performed a simulation-based study to investigate the interrelations of the structural and operational dynamics in the SC. The results advance our knowledge about both ripple and bullwhip effects and reveal, for the first time, that the ripple effect can be a bullwhip-effect driver, while the latter can be launched by a severe disruption even in the downstream direction. The findings show that the ripple effect influences the bullwhip effect through backlog accumulation over the disruption time as a consequence of non-coordinated ordering and production planning policies. To cope with this effect, a contingent production-inventory control policy is proposed that provides results in favour of information coordination in SC disruption management to mitigate both ripple and bullwhip effects. The SC managers need to take into account the risk of bullwhip effect during the capacity disruption and recovery periods.

Suggested Citation

  • Alexandre Dolgui & Dmitry Ivanov & Maxim Rozhkov, 2020. "Does the ripple effect influence the bullwhip effect? An integrated analysis of structural and operational dynamics in the supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 58(5), pages 1285-1301, March.
  • Handle: RePEc:taf:tprsxx:v:58:y:2020:i:5:p:1285-1301
    DOI: 10.1080/00207543.2019.1627438
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    Cited by:

    1. Dirzka, Christopher & Acciaro, Michele, 2022. "Global shipping network dynamics during the COVID-19 pandemic's initial phases," Journal of Transport Geography, Elsevier, vol. 99(C).
    2. Chiang, Chung-Yean & Qian, Zhuang & Chuang, Chia-Hung & Tang, Xiao & Chou, Chia-Ching, 2023. "Examining demand and supply-chain antecedents of inventory dynamics: Evidence from automotive industry," International Journal of Production Economics, Elsevier, vol. 259(C).
    3. Rebecca Stekelorum & Shivam Gupta & Issam Laguir & Sameer Kumar & Subodha Kumar, 2022. "Pouring cement down one of your oil wells: Relationship between the supply chain disruption orientation and performance," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2084-2106, May.
    4. Scarpin, Marcia Regina Santiago & Scarpin, Jorge Eduardo & Krespi Musial, Nayane Thais & Nakamura, Wilson Toshiro, 2022. "The implications of COVID-19: Bullwhip and ripple effects in global supply chains," International Journal of Production Economics, Elsevier, vol. 251(C).
    5. Yilmazkuday, Hakan, 2022. "Coronavirus disease 2019 and the global economy," Transport Policy, Elsevier, vol. 120(C), pages 40-46.
    6. Paul, Sanjoy Kumar & Chowdhury, Priyabrata & Moktadir, Md. Abdul & Lau, Kwok Hung, 2021. "Supply chain recovery challenges in the wake of COVID-19 pandemic," Journal of Business Research, Elsevier, vol. 136(C), pages 316-329.
    7. Dmitry Ivanov, 2022. "Viable supply chain model: integrating agility, resilience and sustainability perspectives—lessons from and thinking beyond the COVID-19 pandemic," Annals of Operations Research, Springer, vol. 319(1), pages 1411-1431, December.
    8. Md. Tarek Chowdhury & Aditi Sarkar & Sanjoy Kumar Paul & Md. Abdul Moktadir, 2022. "A case study on strategies to deal with the impacts of COVID-19 pandemic in the food and beverage industry," Operations Management Research, Springer, vol. 15(1), pages 166-178, June.
    9. María Arquer & Borja Ponte & Raúl Pino, 2022. "Examining the balance between efficiency and resilience in closed-loop supply chains," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(4), pages 1307-1336, December.
    10. Ivanov, Dmitry & Dolgui, Alexandre, 2021. "OR-methods for coping with the ripple effect in supply chains during COVID-19 pandemic: Managerial insights and research implications," International Journal of Production Economics, Elsevier, vol. 232(C).
    11. El Baz, Jamal & Ruel, Salomée, 2021. "Can supply chain risk management practices mitigate the disruption impacts on supply chains’ resilience and robustness? Evidence from an empirical survey in a COVID-19 outbreak era," International Journal of Production Economics, Elsevier, vol. 233(C).
    12. Amjad Hussain & Muhammad Umar Farooq & Muhammad Salman Habib & Tariq Masood & Catalin I. Pruncu, 2021. "COVID-19 Challenges: Can Industry 4.0 Technologies Help with Business Continuity?," Sustainability, MDPI, vol. 13(21), pages 1-25, October.
    13. Muhammad Umar Farooq & Amjad Hussain & Tariq Masood & Muhammad Salman Habib, 2021. "Supply Chain Operations Management in Pandemics: A State-of-the-Art Review Inspired by COVID-19," Sustainability, MDPI, vol. 13(5), pages 1-33, February.
    14. Rozhkov, Maxim & Ivanov, Dmitry & Blackhurst, Jennifer & Nair, Anand, 2022. "Adapting supply chain operations in anticipation of and during the COVID-19 pandemic," Omega, Elsevier, vol. 110(C).
    15. Yılmaz, Ömer Faruk & Yeni, Fatma Betül & Gürsoy Yılmaz, Beren & Özçelik, Gökhan, 2023. "An optimization-based methodology equipped with lean tools to strengthen medical supply chain resilience during a pandemic: A case study from Turkey," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    16. Katsoras, Efthymios & Georgiadis, Patroklos, 2022. "An integrated System Dynamics model for Closed Loop Supply Chains under disaster effects: The case of COVID-19," International Journal of Production Economics, Elsevier, vol. 253(C).
    17. Ivanov, Dmitry, 2020. "Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2) case," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    18. Ramani, Vinay & Ghosh, Debabrata & Sodhi, ManMohan S., 2022. "Understanding systemic disruption from the Covid-19-induced semiconductor shortage for the auto industry," Omega, Elsevier, vol. 113(C).
    19. Di Liang & Ran Bhamra & Zhongyi Liu & Yucheng Pan, 2022. "Risk Propagation and Supply Chain Health Control Based on the SIR Epidemic Model," Mathematics, MDPI, vol. 10(16), pages 1-16, August.
    20. Ozdemir, Dilek & Sharma, Mahak & Dhir, Amandeep & Daim, Tugrul, 2022. "Supply chain resilience during the COVID-19 pandemic," Technology in Society, Elsevier, vol. 68(C).
    21. Ivanov, Dmitry, 2023. "Intelligent digital twin (iDT) for supply chain stress-testing, resilience, and viability," International Journal of Production Economics, Elsevier, vol. 263(C).
    22. Burgos, Diana & Ivanov, Dmitry, 2021. "Food retail supply chain resilience and the COVID-19 pandemic: A digital twin-based impact analysis and improvement directions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    23. Mohd Khairulnizam Zahari & Norhayati Zakuan & Mohd Effandi Yusoff & Muhamad Zameri Mat Saman & Mohd Noor Azli Ali Khan & Farrah Merlinda Muharam & Teh Zaharah Yaacob, 2023. "Viable Supply Chain Management toward Company Sustainability during COVID-19 Pandemic in Malaysia," Sustainability, MDPI, vol. 15(5), pages 1-20, February.
    24. Chih-Hung Hsu & Xu He & Ting-Yi Zhang & An-Yuan Chang & Wan-Ling Liu & Zhi-Qiang Lin, 2022. "Enhancing Supply Chain Agility with Industry 4.0 Enablers to Mitigate Ripple Effects Based on Integrated QFD-MCDM: An Empirical Study of New Energy Materials Manufacturers," Mathematics, MDPI, vol. 10(10), pages 1-35, May.

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