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Bullwhip effect phenomenon and mitigation in logistic firm's supply chain: Adaptive approach by Transborder Agency, Canada

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  • Faizan, Riffat
  • Haque, Adnan ul

Abstract

This case study explores the bullwhip effect phenomenon and mitigation in supply chain process at Transborder Logistic Canada. Despite being one of the largest logistic chains of Canada, for two years it was facing challenges and problem in shape of bullwhip effects. The theoretical framework for present case study is based on the theory of Lee (1977) to overcome the problems in the supply chain process. "Realism" is the research philosophy undertaken to develop a cross-sectional research design to investigate the research problem at hand. Hypothetico-inductive-deductive model is used to explore research variables. Moreover, researcher used mixed method approach by circulating matrix based semi-structured survey questionnaire in different interlinked departments of Transborder Agency. The questionnaire is based on LIKERT Scale (1-to5) rating. In addition to that, open-ended interviews with the head and subordinates of various departments were commenced to explore qualitative aspects related to research problem. Results revealed that logistic firm rely heavily on demand-forecasting information through customers. There was fluctuation in demand order along with order batching, demand forecast updating, rationing and shortage game, and price fluctuation. The Polar diamond approach is considered by Transborder to effectively and efficiently deal with problem at hand and challenges that are hindering the supply chain process. Moreover, VMI, EDI, and POS are tools and techniques used to resolve different types of challenges and find a long term proper rational solution to bullwhip effect (problem at hand). Logistic supply chain inefficiency is mainly caused by bullwhip effect. The rational adoption of model can assist supply chain managers to be proactive in approach.

Suggested Citation

  • Faizan, Riffat & Haque, Adnan ul, 2015. "Bullwhip effect phenomenon and mitigation in logistic firm's supply chain: Adaptive approach by Transborder Agency, Canada," MPRA Paper 68609, University Library of Munich, Germany, revised 05 Nov 2015.
    • Handle: RePEc:pra:mprapa:68609
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    References listed on IDEAS

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    1. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 2004. "Comments on "Information Distortion in a Supply Chain: The Bullwhip Effect"," Management Science, INFORMS, vol. 50(12_supple), pages 1887-1893, December.
    2. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 2004. "Information Distortion in a Supply Chain: The Bullwhip Effect," Management Science, INFORMS, vol. 50(12_supple), pages 1875-1886, December.
    3. Abernethy, Margaret A. & Vagnoni, Emidia, 2004. "Power, organization design and managerial behaviour," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 207-225.
    4. N. Ravichandran, 2008. "Managing bullwhip effect: two case studies," Journal of Advances in Management Research, Emerald Group Publishing Limited, vol. 5(2), pages 77-87, October.
    5. N. Ravichandran, 2008. "Managing bullwhip effect: two case studies," Journal of Advances in Management Research, Emerald Group Publishing Limited, vol. 5(2), pages 77-87, October.
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    Cited by:

    1. Saghir, Marouan & Aston, John, 2017. "The Impact of Various Economic Factors in accessing Finance within the Business Sector: Cases from UK Financial Services Companies," MPRA Paper 84052, University Library of Munich, Germany, revised 20 May 2017.
    2. Omolara Eunice Abdul, 2018. "Entrepreneurial skills and growth of Small and Medium Enterprise (SMEs): A comparative analysis of Nigerian entrepreneurs and Minority entrepreneurs in the UK," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(5), pages 27-46, May.
    3. Zia, Muhammad Qasim & Mehmood, Majid, 2018. "Integration and Analysis of Resource Inventory Data for Risk Assessments of Environmental Contamination in Mixed Use Landscapes in Pakistan," MPRA Paper 85510, University Library of Munich, Germany.

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    More about this item

    Keywords

    Logistic Industry; Supply Chain Management; Bullwhip Effect; Polar Diamond Model;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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