Causes of the bullwhip effect: a systematic review and categorization of its causes
Abstract
Purpose
One pertinent dynamic phenomenon in supply chains is the amplification of order variance, i.e. the bullwhip effect. Its continued significance is underscored in contemporary empirical research. While numerous publications have pinpointed various causes of the bullwhip effect, there remains a gap in their systematic consolidation. The purpose of this paper is to compile a comprehensive list of the causes of the bullwhip effect from existing literature and categorize them appropriately.
Design/methodology/approach
This study conducts a systematic literature review to offer a comprehensive overview of bullwhip effect causes addressed in the existing literature. The identified causes are categorized using a qualitative content analysis approach.
Findings
The study shows the diversity of the causes of the bullwhip effect and their interdependencies. In addition, this study demonstrates that, at the highest level of aggregation, causes of the bullwhip effect can be classified into four main categories: causes inherent in the system structure, causes related to uncertainty, causes related to misaligned incentives and causes related to inadequate cognition of the situation.
Originality/value
The work provides an extensive overview and categorization of bullwhip effect causes, offering valuable insights for both researchers and practitioners seeking a deeper understanding of this phenomenon. In addition, it underscores managerial implications and highlights future research opportunities.
Keywords
Acknowledgements
The authors would like to extend their sincere gratitude to the reviewers for their insightful comments and valuable feedback, which greatly contributed to the improvement of this paper.
Funding: The authors declare that no funds, grants or other support were received during the preparation of this manuscript.
Competing interests: The authors have no relevant financial or non-financial interests to disclose.
Data availability statement: Data sharing is not applicable to this article as no new data were created or analysed in this study.
Citation
Brauch, M., Mohaghegh, M. and Größler, A. (2024), "Causes of the bullwhip effect: a systematic review and categorization of its causes", Management Research Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MRR-05-2023-0392
Publisher
:Emerald Publishing Limited
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