each of the causes of the bullwhip effect. Based on our result, among the causes chosen for the analysis, demand forecast updating, level of echelons, and price variations were the three most significant variables. These three factors explained about 53 percent of the variation in demand amplification factor in the statistical model. This result emphasized that, in order to control the bullwhip effect, retailers need to share the actual demand information and coordinate their operations activities with their partners. This study has a room for future research. As discussed in the previous section, the number of echelons is one of the most significant factors causing the bullwhip effect in a supply chain. Different supply chain structures with varying number of echelons can be developed to investigate the bullwhip effect. By examining the causes of the bullwhip effect under different supply chain structures, researchers will be able to better assess the cause of the bullwhip effect, measure their relative contributions, and thus, make suggestions tailored to a particular supply chain structure. This will help business practitioners find out more effective approach to control the demand amplification they face in their supply chains. References Ackere, A.V., Larsen, E.R. and Morecroft, J.D.W. (1993), “Systems thinking and business process redesign: an application to the beer game”, European Management Journal , Vol. 11 No. 4, pp. 412-23. Bagchi, P.K. and Skjoett-Larsen, T. (2003), “Integration of information technology and organizations in a supply chain”, International Journal of Logistics Management , Vol. 14 No. 1, pp. 89-108. Bowersox, D.J., Closs, D.J. and Stank, T.P. (2003), “How to master cross-enterprise collaboration”, Supply Chain Management Review , Vol. 7 No. 4, pp. 18-27. Christopher, M. (1998), Logistics & Supply Chain Management , 2nd ed., Financial Times, London. Conner, W.S. and Zelen, M. (1959), Fractional Factorial Experiment Designs for Factors at Three Levels , Applied Mathematics Series, No. 54, National Bureau of Standards, Washington, DC. IJRDM 35,4 322 Downloaded by IQRA UNIVERSITY At 04:07 20 September 2015 (PT)
Dejonckheere, J., Disney, S., Lambrecht, M. and Towill, D.R. (2003), “Measuring and avoiding the bullwhip effect: a control theoretic approach”, European Journal of Operations Research , Vol. 147, pp. 567-90. Disney, S.M. and Towill, D.R. (2003a), “On the bullwhip and inventory variance produced by an ordering policy”, OMEGA , Vol. 31, pp. 157-67. Disney, S.M. and Towill, D.R. (2003b), “The effect of vendor managed inventory (VMI) dynamics of the bullwhip effect in supply chains”, International Journal of Production Economics , Vol. 85 No. 2, pp. 199-216. Disney, S.M. and Towill, D.R. (2003c), “Vendor-managed inventory and bullwhip reduction in a two-level supply chain”, International Journal of Operations & Production Management , Vol. 23 No. 6, pp. 625-51. Evans, G.N., Naim, M.M. and Towill, D.R. (1993), “Dynamic supply chain performance: assessing the impact of information systems”, Logistics Information Management , Vol. 6 No. 4, pp. 15-23.
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