New perspectives on the bullwhip effect

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Çoban, Özlem (2011) New perspectives on the bullwhip effect. [Thesis]

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Abstract

In this thesis, we propose a modified version of the Beer Game with two participants at each echelon that have conflicting incentives regarding the order decision. One participant (the sales manager) has backorder cost as his performance measure, whereas the other (the supply manager) has inventory holding cost. We conducted beer game experiments with human participants using the modified and standard game settings. We find that the conflict in the modified game, which reflects the sales/operations conflict in real firms, can dampen the bullwhip effect. We also develop multiple linear regression models to explain participants' order decisions based on factors including incoming demand, backlogs, on-hand inventory levels and outstanding orders. Overall, we identify ''supply risk'' as an important cause of the bullwhip effect.
Item Type: Thesis
Uncontrolled Keywords: Bullwhip effect. -- Beer game experiments. -- Behavioral operations. -- Supply chain. -- Supply chain management. -- Kamçı etkisi. -- Bira oyunu deneyleri. -- Davranıssal operasyonlar. -- Tedarik zinciri. -- Tedarik zinciri yönetimi.
Subjects: T Technology > T Technology (General) > T055.4-60.8 Industrial engineering. Management engineering
Divisions: Faculty of Engineering and Natural Sciences
Faculty of Engineering and Natural Sciences > Academic programs > Manufacturing Systems Eng.
Depositing User: IC-Cataloging
Date Deposited: 05 May 2014 15:14
Last Modified: 26 Apr 2022 10:00
URI: https://research.sabanciuniv.edu/id/eprint/24197

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