(This article originally appeared in Management Science, April , Volume 43, Number 4, pp. , published by The Institute of. (This article originally appeared in Management Science, April , Volume 43, Number 4, pp. –, published by The Institute of Management Sciences.). Information distortion in a supply chain: the bullwhip effect, Article. Bibliometrics Data Bibliometrics. · Citation Count: · Downloads (cumulative): n/a.

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Some manufacturers work with customers to place orders well in advance of the sales season. Finally, the BAT has decided and advised the CTC to call off those activities with immediate effect and attend only in the core business — producing and distributing cigarettes.

A broader testable implication of this evidence is that greater global pressures may reduce union coverage. Ethnographic methodology was applied as the targeted distkrtion units were given the opportunity to talk without the interference of the researcher. Human Resource Development Quarterly, 13 4 When order cycles overlap, most customers that order periodically do so at the same time. Orders surged, but HP managers could not discern whether the orders effet reflected real market demands or were simply phantom orders from resellers trying to get better allocation of the product.

The second category to gather primary data was the managerial level.

Information Distortion in a Supply Chain: “The Bullwhip Effect” – ppt download

Further, it is believed by the management that, keeping their employees fully informed probably would motivate them and enhance their commitment towards the organizational goals to a greater extent.


What can companies do to mitigate them? Successful implementation and usage of manufacturing practices has neither resulted with radical or innovative technologies nor processes and practices. In that particular year political attention towards TUs in organizations were remarkably high and sharp.

To use this website, you must agree to our Privacy Policyincluding cookie policy. In some societies, individuals are highly risk-averse and seek well-defined tasks to avoid uncertainty. Finally, the generous return policies that manufacturers offer retailers aggravate gaming. Accordingly, the following significant differences as explained in Table 1 were quite apparent in compared to in which year the company, industry and the economy as a whole were adversely affected.

The Bullwhip Effect in Supply Chains

Finally, as we suplly before, long resupply lead times can aggravate the bullwhip effect. Artifacts and behaviour are the overt aspects of the culture. The customer’s buying pattern does not reflect its consumption pattern. The choice for companies is clear: Therefore, they believe that, surplus labour can be removed through a delightful retirement package.

His findings suggest that progress can be made in reducing the effect through modifications in individual education. According to Hendricksthe retirement wealth of an employee consist of financial wealth, private annuities, real estate including the main residence, business wealth, vehicles, life- insurance policies, trusts, and other miscellaneous assets minus debts.

Multinationals adapt their HRD practices to accommodate national differences, but these adaptations do not reflect convergence to domestic practice.


Therefore, thr the aforementioned behavioural practices in order to improve the productivity of an organization is of timely importance.

Customers place duplicate orders with multiple suppliers and buy from the first one that can deliver, then cancel all other duplicate orders.

Information Distortion in a Supply Chain: “The Bullwhip Effect”

That is, no retailer can benefit by changing his ordering strategy while other players keep their strategies unchanged. Training Function, CTC 4. International Journal of Bullwhup and Development, 5 4 Additionally, some employees believe that this personal development gained from the company is subject to attitudes, degree of propensity to change and the personality traits of the individual.

In addition, the counterstrategies we described earlier are useful. For example, if the total supply is only 50 percent of the total demand, all customers receive 50 percent of what they distortiin. To solve the problem of distorted information, companies need to first understand what creates the bullwhip effect so they can counteract it.

A benefit of the program is that it allows Apple to see the demand patterns for its products. Slaughter has mentioned that unionism is gradually declined due to the influence of globalization.