Bullwhip effect and its behavioural causes

Bullwhip effect, beer game and the supply line underweighting theory are central to our knowledge of decision making in dynamic environments. This study identifies lacunae in the theoretical and empirical foundations of extant literature and proposes an alternate explanation, a correction model, explaining why overreactions occur. An improved framework is provided to measure information distortion in supply chains, which goes beyond order variance ratio. We adopt a multi-method research design, comprising a field case study based simulations and laboratory experiments. Findings of this study have been published in leading journals such as Decision Sciences and International Journal of Production Research.

Autorentext

Dr. T. T. Niranjan, Assistant Professor of Operations Management,Indian Institute of Technology Bombay.