Lai, Richard (2005): Bullwhip in a Spanish Shop.
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Sebastian de la Fuente is the sixth largest supermarket chain in the Basque region of Spain. It has a novel dataset of 108,605 observations on 3,745 SKUs, collected for almost 2 1/2 years. I find the bullwhip effect in the data: at least 80% of the SKUs have a bigger variance in supplies than variance in sales. I also test six potential causes of the bullwhip, and report clear evidence for three: a rational cause (batching by the supermarket) and two behavioral ones (under-reaction to lags and coordination risks).
|Item Type:||MPRA Paper|
|Institution:||Harvard Business School|
|Original Title:||Bullwhip in a Spanish Shop|
|Keywords:||Bullwhip effect; retail; operations management; behavioral|
|Subjects:||D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M11 - Production Management
|Depositing User:||Richard Lai|
|Date Deposited:||07. Sep 2007|
|Last Modified:||12. Feb 2013 18:23|