Journal of Supply Chain Management Systems

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A Study of Change in Bullwhip Effect:An Indian Sectoral Study


Affiliations
1 Appiled Mathematics, Vivekanada Institute of Professional Studies, Pitampura, New Delhi, Affiliated to GGSIP University, India
2 Operations and Supply Chain Management, School of Managment Studies, IGNOU, India
     

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The amplification of demand as one move up in supply chain is considered as Bullwhip effect. Bullwhip effect creates disturbance in operations and supply chain management (OSCM). Overproduction or underproduction, unmanaged demand, short of cashin- hand to carry out operations, excessive inventory carrying cost, decrease in service level and profit are the implications of bullwhip effect which result in disturbance of the entire supply chain. Bullwhip effect is experienced among all types of products, all types of sectors and all types of supply chain in varying quantum. The present study computes the bullwhip effect among 10 different Indian sectors from past 12-year data. The study analyzes the various changes that occur within these sectors in terms of bullwhip effect and seek the improvement in the bullwhip effect from first half to second half of data within that sector. Results show that the improvement in bullwhip is not significant. Surprisingly in many sectors, the correlation of bullwhip from first half to second half is negative in nature.

Keywords

Bullwhip Effect, Bullwhip Ratio, Indian Sector Analysis, Supply Chain Management.
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  • A Study of Change in Bullwhip Effect:An Indian Sectoral Study

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Authors

Sachin Gupta
Appiled Mathematics, Vivekanada Institute of Professional Studies, Pitampura, New Delhi, Affiliated to GGSIP University, India
Anurag Saxena
Operations and Supply Chain Management, School of Managment Studies, IGNOU, India

Abstract


The amplification of demand as one move up in supply chain is considered as Bullwhip effect. Bullwhip effect creates disturbance in operations and supply chain management (OSCM). Overproduction or underproduction, unmanaged demand, short of cashin- hand to carry out operations, excessive inventory carrying cost, decrease in service level and profit are the implications of bullwhip effect which result in disturbance of the entire supply chain. Bullwhip effect is experienced among all types of products, all types of sectors and all types of supply chain in varying quantum. The present study computes the bullwhip effect among 10 different Indian sectors from past 12-year data. The study analyzes the various changes that occur within these sectors in terms of bullwhip effect and seek the improvement in the bullwhip effect from first half to second half of data within that sector. Results show that the improvement in bullwhip is not significant. Surprisingly in many sectors, the correlation of bullwhip from first half to second half is negative in nature.

Keywords


Bullwhip Effect, Bullwhip Ratio, Indian Sector Analysis, Supply Chain Management.

References