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Supply Chain Risk Management: Bullwhip Effect and Ripple Effect

In: Structural Dynamics and Resilience in Supply Chain Risk Management

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  • Dmitry Ivanov

    (Berlin School of Economics and Law)

Abstract

Uncertainty is a system property characterizing the incompleteness of our knowledge about the system and the conditions of its development. Uncertainty is a polysemic term (poly – many, sema – a sign). Historically, the first terms related to uncertainty were accident, probability and possibility, which we relate to Aristotle. Up to the twentieth century, the mathematical basics of uncertainty factor description were founded on probability–frequency interpretation and are related to Pascal, Ferma, Bernoulli and Laplace. Modern probability theory is based on the research of Kolmogorov, who introduced an axiomatic definition of probability as a measure related to a system of axioms of a so-called probability space.

Suggested Citation

  • Dmitry Ivanov, 2018. "Supply Chain Risk Management: Bullwhip Effect and Ripple Effect," International Series in Operations Research & Management Science, in: Structural Dynamics and Resilience in Supply Chain Risk Management, chapter 0, pages 19-44, Springer.
  • Handle: RePEc:spr:isochp:978-3-319-69305-7_2
    DOI: 10.1007/978-3-319-69305-7_2
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    Cited by:

    1. Muhammad Rahies Khan & Amir Manzoor, 2021. "Application and Impact of New Technologies in the Supply Chain Management During COVID-19 Pandemic: A Systematic Literature Review," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 277-292.
    2. Li, Yuhong & Zobel, Christopher W., 2020. "Exploring supply chain network resilience in the presence of the ripple effect," International Journal of Production Economics, Elsevier, vol. 228(C).

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