The implications of information sharing on bullwhip effects in a toy supply chain Online publication date: Thu, 30-Nov-2006
by Chee Yew Wong, Mohamed Mostafa El-Beheiry, John Johansen, Hans-Henrik Hvolby
International Journal of Risk Assessment and Management (IJRAM), Vol. 7, No. 1, 2007
Abstract: This paper compares actual bullwhip effects provided by retailers who shared downstream demand information and retailers who did not share in a three-level (divergent) toy supply chain. The toy supply chain faces high forecast errors and bullwhip effects due to unpredictable and seasonal demand patterns. The results indicate a reduction of the bullwhip effect and an improvement of the fill rate due to the increase of retailers who shared downstream demand information. This paper also addresses two main causes of the bullwhip effect, which are the supply variability and limited use of the shared demand information. To reduce the bullwhip effect, two solutions using the shared information are tested. They are a proposed premature replenishment rule and a simple forecast updating mechanism. Both solutions are proven capable in reducing bullwhip effects of the toy supply chain even without coordination between the toy manufacturer and the retailers.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Risk Assessment and Management (IJRAM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook