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Evidence of bullwhip effect in healthcare sector: causes, consequences and cures

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  • Kannan Sethuraman
  • Devanath Tirupati

Abstract

The primary issue explored in this research is how demand distortions, called the 'bullwhip' effect, create inefficiencies for firms in the service industries. Much of the prior research has focused on documenting the existence of bullwhip effect in a number of manufacturing situations and more recently, authors have posited possible causes and cures for this phenomenon. To our knowledge, there has not been any published research that has investigated the existence of bullwhip effect in service settings. In this paper, we demonstrate the existence of bullwhip effect in the healthcare sector through case studies. We also discuss the possible effects and propose corrective actions.

Suggested Citation

  • Kannan Sethuraman & Devanath Tirupati, 2005. "Evidence of bullwhip effect in healthcare sector: causes, consequences and cures," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 1(4), pages 372-394.
    • Handle: RePEc:ids:ijsoma:v:1:y:2005:i:4:p:372-394
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    Cited by:

    1. S. Creemers & M. Lambrecht & N. Vandaele, 2007. "Queueing Models in Healthcare," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(3), pages 471-498.
    2. Paulo Gonçalves & Mohammad Moshtari, 2021. "The impact of information visibility on ordering dynamics in a supply chain: a behavioral perspective," System Dynamics Review, System Dynamics Society, vol. 37(2-3), pages 126-154, April.

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