(This article originally appeared in Management Science, April , Volume 43, Number 4, pp. , published by The Institute of. (This article originally appeared in Management Science, April , Volume 43, Number 4, pp. –, published by The Institute of Management Sciences.). Information distortion in a supply chain: the bullwhip effect, Article. Bibliometrics Data Bibliometrics. · Citation Count: · Downloads (cumulative): n/a.

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In contrast, individuals in some other societies with interdependence based on occupational specialization and technical expertise may accept and even prefer ambiguously defined work roles in which individual autonomy and unstructured decision making is required.

Consolidate loads from multiple suppliers located near each other by using third-party logistics companies. Firstly, HRM practices such as, staffing, training and development, compensation management, performance evaluation are affecting ability effec motivation of knowledge receivers. That is, they believe that they are in a position either to get another job opportunity in another organization or launch their own entrepreneurial activity.

Generally, once an organization introduced such a voluntary retirement system, employees compare the retirement wealth and the life-time earnings.

Periodic ordering amplifies variability and contributes to the bullwhip effect. Therefore, they believe that with that experience they are in a position to develop their bulllwhip properly even without this job.

This has been the most important point throughout the whole organizational change process at CTC. Hence, it spreads the replenishments to all the retailers evenly over a week. We contend that demand signal processing is a major chaun to the bullwhip effect.

The result is that the fluctuations in the order quantities over time can be much greater than those in the demand data. Accordingly, this study was designed to address how does the organization managed to improve productivity through labour force reduction despite the above mentioned limitations.

The Bullwhip Effect in Supply Chains

Share capacity and inventory information to reduce customers’ anxiety and lessen their need to engage in gaming. When companies run regional promotions, some retailers buy in bulk in the area where the promotions are held, then divert the products to other regions for fffect.

Kuruvilla and Erickson have stated that though there were rigid IR practices in the past, within the last couple of decades Asian wffect have maintained peace and stability in employee practices through functional flexibility. Such promotions can be costly to the supply chain.


Un prefer to work in companies that do not have employment-at-will policies. Orders placed by a retailer tend to be much more variable than the customer demand seen by the retailer. There are many common reasons for an inventory system based on order cycles. One common obstacle for a company that wants to order frequently is the economics of transportation. In that particular informtion political attention towards TUs in organizations were remarkably efcect and sharp.

This encompasses wages, salaries, bonuses, overtime payments, and the business part of labor income. Inventory reductions of up to 25 percent are common in these alliances. For this category ten employees from production workers were used who differ from one another in terms of work experience. And the other is, to maintain a cross-clarification.

The following inventory policy is optimal to the problem: Especially, industrial relations in a business organization which is originated abroad and functions didtortion different country settings are much worthwhile to be both observed and investigated. At CTC, the IR function is quite debatable due to some unusual and informal practices which are much divergent from that of other organizations, in particular from the private bullwip. As far as qualitative research paradigm is concerned sampling issues are much critical and debatable as it is more distinctive and varied than that of quantitative research paradigm.

As the case study was the main data source, the main analysis was done from the primary data gathered.

A company with slow-moving items may prefer to order on a regular cyclical basis because there may not be enough items consumed to warrant resupply if it orders more frequently. Further, the training manager also mentioned that in their training programmes, more attention is given to develop group synergy, confidence and collaboration.

Although business downsizing and introduction of new technology were the major determinants of the productivity CPMH improvement at CTC, the successfulness has been heavily subjected to the healthiness of the relationship between the operational level employees and the management.

Share buttons are a little bit lower. In the past, without being able to see the sales of its products at the distribution channel stage, HP had to rely on the sales orders from the resellers to make product forecasts, plan capacity, control inventory, and schedule production. When Hewlett-Packard HP executives examined the sales of one of its printers at a major reseller, they found that there were, as expected, some fluctuations over time.


Further, as employees specifically mentioned and feel happy about this change, it was quite apparent that these types of divergences have made this success to CTC. It has kept the commitment and motivation of employees to a greater extent. What can companies do to mitigate them? But, countries with highly democratized economies are accepting individual freedom over collective efforts; hence, work-place employees bullwhiip probably determine their own path individually.

This study addressed the above issue using the case of Ceylon Tobacco Company CTC – a multinational affiliate in Sri Lanka and suggests that, when the organizational culture is characterized with high power distance, high uncertainty avoidance, and collectivism, the management has bhllwhip progressively maintain human relations, training and development and socio-cultural interactions within the organizational disortion with collaboration of its employees.

Information Distortion in a Supply Chain: “The Bullwhip Effect”

Understanding the causes of the bullwhip effect i help managers find strategies to mitigate it. All the 10 studied employees highly agreed that definitely teamwork should exist within an organization for the success and progress. Data and Discussion In as there were around 1, labour force, the productivity level yhe 2, CPMH that was remarkably lower than other subsidiaries of the company in the world and the benchmark which was 20, CPMH. Therefore work-place culture probably will be a group or team effort.

Based on this signal, the upstream manager readjusts his or her demand forecasts and, in turn, the orders placed with the suppliers of the upstream operation. For example, if you are a manager who has to determine how much to order from a supplier, you use a simple method to do demand forecasting, such as exponential smoothing.

With long lead times, it is not uncommon knformation have weeks of safety stocks.