An Interaction Investigation of the Contributing Factors of the Bullwhip Effect Using a Bi-Level Social Network Analysis Approach

Abstract

The bullwhip effect refers to the phenomenon of the increase in demand variability from supply chain downstream members to upstream members. This effect is critically important for the different sectors involved in a supply chain and is one of the main causes of inefficiency, material waste, and low sustainability in supply chain management. In order to help minimize the bullwhip effect and achieve sustainable development in a supply chain, this study identifies the influential factors of the bullwhip effect in a supply chain and the interactive relationships among them. A bi-level bullwhip effect analysis model was established to evaluate the causes of the bullwhip effect at different levels by using a social network analysis approach. Furthermore, to help achieve efficient and sustainable development, the implications of mitigating the impacts of the bullwhip effect in a supply chain were explored based on the results of the inter-relationships analysis among the contributing factors of the bullwhip effect.