"Bullwhip Effect" in Supply Chains

The system which connects all the elements between theproducer and the consumer is called the supply chain. This definitionof the supply chain shows its complexity, dynamics anduncertainty. Successful operation of supply chains requires thebest possible coordination of its elements, which obviously...

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Main Authors: Anđelko Ščukanec, Kristijan Rogić, Darko Babić
Format: Article
Language:English
Published: University of Zagreb, Faculty of Transport and Traffic Sciences 2007-09-01
Series:Promet (Zagreb)
Subjects:
Online Access:http://www.fpz.unizg.hr/traffic/index.php/PROMTT/article/view/963
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author Anđelko Ščukanec
Kristijan Rogić
Darko Babić
author_facet Anđelko Ščukanec
Kristijan Rogić
Darko Babić
author_sort Anđelko Ščukanec
collection DOAJ
description The system which connects all the elements between theproducer and the consumer is called the supply chain. This definitionof the supply chain shows its complexity, dynamics anduncertainty. Successful operation of supply chains requires thebest possible coordination of its elements, which obviously indicatesthe utmost importance of the information flow alongthem. The operation of supply chains on the whole has to bemore successful than the operation of their individual elements.It should be noted that such a complex process may give rise toa series of problems, unwanted events, as well as substantial reductionin profits and the level of service. One of such unwantedphenomena which may occur in the supply chain is the"bullwhip effect". This is a possible increase in the diversity oforders which occurs when we move along the elements of thesupply chain (from the customers' orders to the producers' orders).The work analyses the processes within the supply chainsand the occurrence of the bullwhip effect. The main causes ofthe bullwhip effect that we encounter daily in the supply chainshave been clearly defined. The paper also presents the mainnegative consequences of such a disturbance within the supplychains, and provides possible solutions for avoiding the bullwhipeffect.
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spelling doaj.art-6e5f4f741bc8469a9cbe2aa64979a38a2022-12-22T01:17:07ZengUniversity of Zagreb, Faculty of Transport and Traffic SciencesPromet (Zagreb)0353-53201848-40692007-09-0119528929310.7307/ptt.v19i5.963817"Bullwhip Effect" in Supply ChainsAnđelko ŠčukanecKristijan RogićDarko BabićThe system which connects all the elements between theproducer and the consumer is called the supply chain. This definitionof the supply chain shows its complexity, dynamics anduncertainty. Successful operation of supply chains requires thebest possible coordination of its elements, which obviously indicatesthe utmost importance of the information flow alongthem. The operation of supply chains on the whole has to bemore successful than the operation of their individual elements.It should be noted that such a complex process may give rise toa series of problems, unwanted events, as well as substantial reductionin profits and the level of service. One of such unwantedphenomena which may occur in the supply chain is the"bullwhip effect". This is a possible increase in the diversity oforders which occurs when we move along the elements of thesupply chain (from the customers' orders to the producers' orders).The work analyses the processes within the supply chainsand the occurrence of the bullwhip effect. The main causes ofthe bullwhip effect that we encounter daily in the supply chainshave been clearly defined. The paper also presents the mainnegative consequences of such a disturbance within the supplychains, and provides possible solutions for avoiding the bullwhipeffect.http://www.fpz.unizg.hr/traffic/index.php/PROMTT/article/view/963supply chainsbullwhip effectdistribution
spellingShingle Anđelko Ščukanec
Kristijan Rogić
Darko Babić
"Bullwhip Effect" in Supply Chains
Promet (Zagreb)
supply chains
bullwhip effect
distribution
title "Bullwhip Effect" in Supply Chains
title_full "Bullwhip Effect" in Supply Chains
title_fullStr "Bullwhip Effect" in Supply Chains
title_full_unstemmed "Bullwhip Effect" in Supply Chains
title_short "Bullwhip Effect" in Supply Chains
title_sort bullwhip effect in supply chains
topic supply chains
bullwhip effect
distribution
url http://www.fpz.unizg.hr/traffic/index.php/PROMTT/article/view/963
work_keys_str_mv AT anđelkoscukanec bullwhipeffectinsupplychains
AT kristijanrogic bullwhipeffectinsupplychains
AT darkobabic bullwhipeffectinsupplychains