Bullwhip effect for all? Non-sensitive supply chains

Abstract

bullwhip effect (BWE) is a phenomenon that is highly in focus due to the impact on supply chain performance and financial results. It is necessary to keep focus on the phenomenon, but the cases need to be determined when investigation is relevant. The aim of this paper is the determination of the operational supply chain characteristics that makes the occurrence of the BWE less likely. This shows what are the attributes need to be checked to define if the examined chain or echelon is immune or not for the bullwhip effect. In this article the investigation is based on the triggering factors of the phenomenon. These causes are paired with the operational supply chain characteristics. Based on that we can define the key factors that are showing if the examined chain’s operation is relevant or not for the occurrence of bullwhip effect. Beside the importance of tracking and elimination of the bullwhip effect we also need to consider that the phenomenon is not relevant for all product and supply chain type.