The bullwhip effect - Impact of stochastic lead time, information quality, and information sharing: A simulation study

328Citations
Citations of this article
225Readers
Mendeley users who have this article in their library.
Get full text

Abstract

We use a simulation model called 'SISCO' to examine the effects in supply chains of stochastic lead times and of information sharing and quality of that information in a periodic order-up-to level inventory system. We test the accuracy of the simulation by verifying the results in Chen et al. (2000a) and Dejonckheere et al. (2004). We find that lead-time variability exacerbates variance amplification in a supply chain, and that information sharing and information quality are highly significant. For example, using the assumptions in Chen et al. (2000a) and Dejonckheere et al. (2004), we find in a numerical experiment of a customer-retailer-wholesaler-distributor-factory supply chain that variance amplification is attenuated by nearly 50 percent at the factory due to information sharing. Other assumptions we make are based on interviews or conversations with managers at large supply chains.

References Powered by Scopus

Information distortion in a supply chain: The bullwhip effect

3253Citations
N/AReaders
Get full text

Value of information sharing in a two-level supply chain

1636Citations
N/AReaders
Get full text

Quantifying the bullwhip effect in a simple supply chain: the impact of forecasting, lead times, and information

1440Citations
N/AReaders
Get full text

Cited by Powered by Scopus

Information sharing and supply chain performance: The role of connectivity and willingness

394Citations
N/AReaders
Get full text

Complexity and adaptivity in supply networks: Building supply network theory using a complex adaptive systems perspective

383Citations
N/AReaders
Get full text

The bullwhip effect: Progress, trends and directions

291Citations
N/AReaders
Get full text

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Cite

CITATION STYLE

APA

Chatfield, D. C., Kim, J. G., Harrison, T. P., & Hayya, J. C. (2004). The bullwhip effect - Impact of stochastic lead time, information quality, and information sharing: A simulation study. Production and Operations Management. Florida International University. https://doi.org/10.1111/j.1937-5956.2004.tb00222.x

Readers' Seniority

Tooltip

PhD / Post grad / Masters / Doc 114

73%

Researcher 18

11%

Professor / Associate Prof. 16

10%

Lecturer / Post doc 9

6%

Readers' Discipline

Tooltip

Business, Management and Accounting 94

60%

Engineering 45

29%

Computer Science 12

8%

Economics, Econometrics and Finance 6

4%

Save time finding and organizing research with Mendeley

Sign up for free