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
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|Work Title||Impact of variance in firms and supply chains|
|License||In Copyright (Rights Reserved)|
|Work Type||Research Paper|
|Deposited||July 27, 2021|
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