Munich Personal RePEc Archive

Bullwhip in a Spanish Shop

Lai, Richard (2005): Bullwhip in a Spanish Shop.

[img]
Preview
PDF
MPRA_paper_4758.pdf

Download (519Kb) | Preview

Abstract

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).

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.