The bullwhip effect in intra‐organisational echelons

Abstract

This research applies the construct of bullwhip effect in a non‐traditional context. It is explored in intra‐organisational echelons. It is argued that the bullwhip effect in a company's inventory management of inbound and outbound logistics flows depends in part upon the gap between the degree of speculation and postponement of business activities. It is also argued that the bullwhip effect is caused by the value adding of business activities in supply chains. The study shows that there is a potential bullwhip effect between companies’ inbound and outbound logistics flows, i.e. two internal stocking levels. A see‐saw model of the bullwhip effect, and a typology of the bullwhip effect in intra‐organisational echelons, are introduced. The term “reversed bullwhip effect” is also introduced. Finally, a model of the bullwhip effect‐scenarios in a dynamic business environment positions these contributions in a wider theoretical and managerial context.

Citation

Svensson, G. (2003), "The bullwhip effect in intra‐organisational echelons", International Journal of Physical Distribution & Logistics Management, Vol. 33 No. 2, pp. 103-131. https://doi.org/10.1108/09600030310469135