Lai, Richard (2005): Bullwhip in a Spanish Shop.
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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).
| Item Type: | MPRA Paper |
|---|---|
| Institution: | Harvard Business School |
| Original Title: | Bullwhip in a Spanish Shop |
| Language: | English |
| 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 ; Personnel Economics > M1 - Business Administration > M11 - Production Management |
| Item ID: | 4758 |
| Depositing User: | Richard Lai |
| Date Deposited: | 07 Sep 2007 |
| Last Modified: | 26 Sep 2019 09:02 |
| URI: | https://mpra.ub.uni-muenchen.de/id/eprint/4758 |
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