Vertical Contracts in a Supply Chain and the Bullwhip Effect

Autor:	Horst Raff, Zhan Qu
Rok vydání:	2021
Předmět:	050208 finance Strategy and Management Bullwhip effect Supply chain 0502 economics and business 05 social sciences Economics 050207 economics Management Science and Operations Research Volatility (finance) Industrial organization
Zdroj:	Management Science. 67:3744-3756
ISSN:	1526-5501 0025-1909
Popis:	This paper shows that decentralized supply chains, in which upstream firms use linear wholesale prices, may experience lower upstream production and downstream sales volatility than vertically integrated supply chains and may be less susceptible to the bullwhip effect by which the variance of upstream production exceeds the variance of downstream sales. The reason is that decentralized supply chains exhibit a price effect, whereby upstream producers raise wholesale prices in the case of positive demand shocks and lower wholesale prices in the case of negative demand shocks. Whereas upstream producers benefit from the price effect and, thus, from a dampening of the bullwhip effect, downstream firms may lose, and overall supply chain profit may decrease. This paper was accepted by Vishal Gaur, operations management.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::54a111ac1f768fb1eabbf49765d293a0 https://doi.org/10.1287/mnsc.2020.3630 Zobrazit plný text záznamu