Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/170529 
Year of Publication: 
2017
Series/Report no.: 
CEPIE Working Paper No. 17/17
Publisher: 
Technische Universität Dresden, Center of Public and International Economics (CEPIE), Dresden
Abstract: 
This paper constructs a model of a supply chain to examine how demand volatility is passed upstream through the chain. In particular, we seek to determine how likely it is that the chain experiences a bullwhip effect, where the variance of the upstream firm's production exceeds the variance of the downstream firm's sales. We show that the bullwhip effect is more likely to occur and is greater in size in supply chains in which inventory control is centralized rather than decentralized, that is, exercised by the downstream firm.
Subjects: 
bullwhip effect
production smoothing
inventory
supply chain
volatility
stockout avoidance
JEL: 
L22
L14
D92
M11
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
335.55 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.