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Impact of demand nature on the bullwhip effect: bridging the gap between theoretical and empirical research

Research output: Contribution in Book/Report/Proceedings - With ISBN/ISSNChapter (peer-reviewed)

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Impact of demand nature on the bullwhip effect : bridging the gap between theoretical and empirical research. / Trapero, Juan R.; Garcia, Fausto P.; Kourentzes, Nikos.

Proceedings of the Seventh International Conference on Management Science and Engineering Management.. ed. / Jiuping Xu; John A. Fry; Benjamin Lev; Asaf Hajiyev. Berlin : Springer Verlag, 2014. p. 1127-1137 (Lecture Notes in Electrical Engineering; Vol. 242).

Research output: Contribution in Book/Report/Proceedings - With ISBN/ISSNChapter (peer-reviewed)

Harvard

Trapero, JR, Garcia, FP & Kourentzes, N 2014, Impact of demand nature on the bullwhip effect: bridging the gap between theoretical and empirical research. in J Xu, JA Fry, B Lev & A Hajiyev (eds), Proceedings of the Seventh International Conference on Management Science and Engineering Management.. Lecture Notes in Electrical Engineering, vol. 242, Springer Verlag, Berlin, pp. 1127-1137. https://doi.org/10.1007/978-3-642-40081-0_95

APA

Trapero, J. R., Garcia, F. P., & Kourentzes, N. (2014). Impact of demand nature on the bullwhip effect: bridging the gap between theoretical and empirical research. In J. Xu, J. A. Fry, B. Lev, & A. Hajiyev (Eds.), Proceedings of the Seventh International Conference on Management Science and Engineering Management. (pp. 1127-1137). (Lecture Notes in Electrical Engineering; Vol. 242). Springer Verlag. https://doi.org/10.1007/978-3-642-40081-0_95

Vancouver

Trapero JR, Garcia FP, Kourentzes N. Impact of demand nature on the bullwhip effect: bridging the gap between theoretical and empirical research. In Xu J, Fry JA, Lev B, Hajiyev A, editors, Proceedings of the Seventh International Conference on Management Science and Engineering Management.. Berlin: Springer Verlag. 2014. p. 1127-1137. (Lecture Notes in Electrical Engineering). https://doi.org/10.1007/978-3-642-40081-0_95

Author

Trapero, Juan R. ; Garcia, Fausto P. ; Kourentzes, Nikos. / Impact of demand nature on the bullwhip effect : bridging the gap between theoretical and empirical research. Proceedings of the Seventh International Conference on Management Science and Engineering Management.. editor / Jiuping Xu ; John A. Fry ; Benjamin Lev ; Asaf Hajiyev. Berlin : Springer Verlag, 2014. pp. 1127-1137 (Lecture Notes in Electrical Engineering).

Bibtex

@inbook{f805ca4279f1469ab64d28200fc3bb4b,
title = "Impact of demand nature on the bullwhip effect: bridging the gap between theoretical and empirical research",
abstract = "The bullwhip effect (BE) consists of the demand variability amplification that exists in a supply chain when moving upwards. This undesirable effect produces excess inventory and poor customer service. Recently, several research papers from either a theoretical or empirical point of view have indicated the nature of the de- mand process as a key aspect to defining the BE. Nonetheless, they reached different conclusions. On the one hand, theoretical research quantified the BE depending on the lead time and ARIMA parameters, where ARIMA functions were employed to model the demand generator process. In turn, empirical research related nonlinearly the demand variability extent with the BE size. Although, it seems that both results are contradictory, this paper explores how those conclusions complement each other. Essentially, it is shown that the theoretical developments are precise to determine the presence of the BE based on its ARIMA parameter estimates. Nonetheless, to quan- tify the size of the BE, the demand coefficient of variation should be incorporated. The analysis explores a two-staged serially linked supply chain, where weekly data at SKU level from a manufacturer specialized in household products and a major UK grocery retailer have been collected.",
keywords = "Bullwhip effect, demand forecasting, Supply Chain Management",
author = "Trapero, {Juan R.} and Garcia, {Fausto P.} and Nikos Kourentzes",
year = "2014",
doi = "10.1007/978-3-642-40081-0_95",
language = "English",
isbn = "978-3-642-40080-3",
series = "Lecture Notes in Electrical Engineering",
publisher = "Springer Verlag",
pages = "1127--1137",
editor = "Jiuping Xu and Fry, {John A. } and Benjamin Lev and Asaf Hajiyev",
booktitle = "Proceedings of the Seventh International Conference on Management Science and Engineering Management.",

}

RIS

TY - CHAP

T1 - Impact of demand nature on the bullwhip effect

T2 - bridging the gap between theoretical and empirical research

AU - Trapero, Juan R.

AU - Garcia, Fausto P.

AU - Kourentzes, Nikos

PY - 2014

Y1 - 2014

N2 - The bullwhip effect (BE) consists of the demand variability amplification that exists in a supply chain when moving upwards. This undesirable effect produces excess inventory and poor customer service. Recently, several research papers from either a theoretical or empirical point of view have indicated the nature of the de- mand process as a key aspect to defining the BE. Nonetheless, they reached different conclusions. On the one hand, theoretical research quantified the BE depending on the lead time and ARIMA parameters, where ARIMA functions were employed to model the demand generator process. In turn, empirical research related nonlinearly the demand variability extent with the BE size. Although, it seems that both results are contradictory, this paper explores how those conclusions complement each other. Essentially, it is shown that the theoretical developments are precise to determine the presence of the BE based on its ARIMA parameter estimates. Nonetheless, to quan- tify the size of the BE, the demand coefficient of variation should be incorporated. The analysis explores a two-staged serially linked supply chain, where weekly data at SKU level from a manufacturer specialized in household products and a major UK grocery retailer have been collected.

AB - The bullwhip effect (BE) consists of the demand variability amplification that exists in a supply chain when moving upwards. This undesirable effect produces excess inventory and poor customer service. Recently, several research papers from either a theoretical or empirical point of view have indicated the nature of the de- mand process as a key aspect to defining the BE. Nonetheless, they reached different conclusions. On the one hand, theoretical research quantified the BE depending on the lead time and ARIMA parameters, where ARIMA functions were employed to model the demand generator process. In turn, empirical research related nonlinearly the demand variability extent with the BE size. Although, it seems that both results are contradictory, this paper explores how those conclusions complement each other. Essentially, it is shown that the theoretical developments are precise to determine the presence of the BE based on its ARIMA parameter estimates. Nonetheless, to quan- tify the size of the BE, the demand coefficient of variation should be incorporated. The analysis explores a two-staged serially linked supply chain, where weekly data at SKU level from a manufacturer specialized in household products and a major UK grocery retailer have been collected.

KW - Bullwhip effect

KW - demand forecasting

KW - Supply Chain Management

U2 - 10.1007/978-3-642-40081-0_95

DO - 10.1007/978-3-642-40081-0_95

M3 - Chapter (peer-reviewed)

SN - 978-3-642-40080-3

T3 - Lecture Notes in Electrical Engineering

SP - 1127

EP - 1137

BT - Proceedings of the Seventh International Conference on Management Science and Engineering Management.

A2 - Xu, Jiuping

A2 - Fry, John A.

A2 - Lev, Benjamin

A2 - Hajiyev, Asaf

PB - Springer Verlag

CY - Berlin

ER -