bullwhip-effect

The Influence of Decision Patterns on the Bullwhip Effect

The Influence of Decision Patterns on the Bullwhip Effect

Counterintuitive decision making as a behavioral cause
Bernd Scholz-Reiter ORCID Icon, Salima Delhoum
The bullwhip effect leads to instabilities in supply chains. Research on this phenomenon stresses the normative approach. This means that the causes of the bullwhip effect are identified within the structure and processes of the supply chain. However, the bullwhip effect persists even when the operational causes are under control, or when demand information is stationary and known to all parties. Most of all, the influence of behavioural decision making on the bullwhip effect has been underestimated. This is why the paper strives to shed light on this aspect by resorting to a simulation game, the supply net game, for learning inventory control in production networks. The experimental results, involving 130 participants, show that the decision pattern of counterintuitive decision making produces and reinforces what it is thought to lessen namely the bullwhip effect. This happens whenever the participants restrain from ordering while backlogs are building up or continue to order while ...
Industrie Management | Volume 24 | 2008 | Edition 4 | Pages 53-56
Instabilities in Dynamic Production and Logistic Networks

Instabilities in Dynamic Production and Logistic Networks

Simulation-based analysis
Bernd Scholz-Reiter ORCID Icon, Uwe Hinrichs, Salima Delhoum
Production and logistics networks are characterized by an increasing dynamic and structural complexity, which makes an efficient planning more difficult. Observed non-linear dynamic effects, which in case of similar causes can lead to different results, contribute additionally to this problem. As a consequence strong inventory fluctuations can appear among others, which represent a strong economically load for network participants. The simulation-supported analysis of these connections is the main focus of this article. Moreover as a result of the analysis ways and means are pointed out, which will help to react more adequately to the given problems.
Industrie Management | Volume 21 | 2005 | Edition 5 | Pages 25-28