Learning, communication, and the bullwhip effect

We investigate the effect of learning and communication on the bullwhip effect in supply chains. Using the beer distribution game in a controlled laboratory setting, we test four behavioral hypotheses – bounded rationality, experiential learning, systems learning, and organizational learning – by sy...

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Veröffentlicht in:Journal of operations management 2006-12, Vol.24 (6), p.839-850
Hauptverfasser: Wu, Diana Yan, Katok, Elena
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Katok, Elena
description We investigate the effect of learning and communication on the bullwhip effect in supply chains. Using the beer distribution game in a controlled laboratory setting, we test four behavioral hypotheses – bounded rationality, experiential learning, systems learning, and organizational learning – by systematically manipulating training and communication protocols. We find that order variability decreases significantly in a setting in which participants start with hands-on experience, and are then allowed to formulate team strategies collaboratively. This result indicates that while training may improve individuals’ knowledge and understanding of the system, it does not improve supply chain performance unless supply chain partners are allowed to communicate and share this knowledge. Our results indicate that the bullwhip effect is, at least in part, caused by insufficient coordination between supply chain partners.
doi_str_mv 10.1016/j.jom.2005.08.006
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source Wiley Online Library Journals Frontfile Complete
subjects Bullwhip effect
Communication
Experiential learning
Experimental economics
Organizational learning
Studies
Supply chain management
Supply chains
Systems learning
title Learning, communication, and the bullwhip effect
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