Impact of variance in firms and supply chains

The term ‘bullwhip’ describes the effect by which how slow- or fast-moving customer demand at the front end of supply chain relates to large swings in production for the suppliers at the other end of the supply chain. The term Cashflow Bullwhip (CFB) is introduced here to capture the bullwhip effect of the cash flow of an industry. The objective of this paper is to investigate and document the prevalence of bullwhip effect in an automotive industry-level U.S. data. Along with bullwhip effect, we intend to capture the variation within workflow of company XYZ caused by the downtime of machine. We say an industry exhibits the bullwhip effect if the variance of the inflow of material to the industry (purchase) is greater than the variance of the industry’s sales. Similarly, cashflow bullwhip effect is identified if the variance of the working capital of an industry is greater than the variance of the industry’s cost of goods sold. Through our findings, we found that the traditional bullwhip effect has been significant in wholesalers, retailers, and manufacturers, respectively. Also, we found that the cashflow bullwhip effect has been exhibited by manufacturers, followed by wholesalers and retailers did not exhibit a significant effect. Further hypotheses were proposed for bullwhip to check how several other supply chain parameters are affected due to bullwhip effect. For workflow analysis, we could see high variability with company XYZ’s machine data yielding high variable system process. For this paper, we intend to check the impact of variance because be it cashflow or workflow, variation corrupts performance.

Advisor: Dr. Vittaldas Prabhu

Files

Metadata

Work Title Impact of variance in firms and supply chains
Access
Penn State
Creators
  1. YASH NADAGIRE
Keyword
  1. cashflow; working capital; cashflow bullwhip effect; traditional bullwhip effect, variances
License In Copyright (Rights Reserved)
Work Type Research Paper
Publication Date 2021
Deposited July 27, 2021

Versions

Analytics

Collections

This resource is currently not in any collection.

Work History

Version 1
published

  • Created
  • Added Creator YASH NADAGIRE
  • Added IME MS RESEARCH PAPER_YASH_NADAGIRE.pdf
  • Updated License Show Changes
    License
    • https://rightsstatements.org/page/InC/1.0/
  • Published
  • Updated
  • Updated