Information Distortion in a Supply Chain¶
Lee, H. L., Padmanabhan, V., & Whang, S. (1997). Information Distortion in a Supply Chain: The Bullwhip Effect. Management Science, 43(4), 546-558.
Cited by¶
8 citations across 8 artifacts.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Backpressure
- In supply chains it is the order that propagates back from a stockout, which without visibility becomes the bullwhip effect, an unthrottled version where signals amplify instead of damp.
This sourceCharacterizes the amplification of demand variability up a supply chain in the absence of shared end-demand visibility — the un-throttled, amplifying failure mode.
- In supply chains it is the order that propagates back from a stockout, which without visibility becomes the bullwhip effect, an unthrottled version where signals amplify instead of damp.
- Buffering
- Cross-domain transfer also reveals common failure modes: cascading overflow (congestion collapse), cascade starvation (the bullwhip effect in supply chains identified by Lee, Padmanabhan, and Whang (1997)), and latency bloat (Bufferbloat in networks).
This sourceSeminal analysis of supply-chain bullwhip: decomposes the amplification of demand variability into four mechanisms (demand-signal processing, rationing game, order batching, price variation) driven by lead-time lags and feedback delays.
- Cross-domain transfer also reveals common failure modes: cascading overflow (congestion collapse), cascade starvation (the bullwhip effect in supply chains identified by Lee, Padmanabhan, and Whang (1997)), and latency bloat (Bufferbloat in networks).
- Comparative Statics
- The path-suppression invariant is exactly where the honesty discipline earns its keep: the static answer is silent on the bullwhip-style oscillation the order change itself induces upstream
This sourceIdentifies and analyzes the bullwhip effect, the amplification of order oscillations upstream in a supply chain. (
- The path-suppression invariant is exactly where the honesty discipline earns its keep: the static answer is silent on the bullwhip-style oscillation the order change itself induces upstream
- Dependency
- Dependencies can be material (downstream production needs upstream parts, the configuration Lee, Padmanabhan, and Whang (1997) showed amplifies demand variation through the bullwhip effect), informational (a downstream calculation needs an upstream input), temporal (a later event needs an earlier one to have occurred), logical (a theorem needs a lemma), semantic (a referring expression needs a referent, the relation Karttunen (1973) formalized in his account of presupposition projection), or institutional (a contractual obligation needs a triggering condition).
This sourceShows how upstream–downstream supply-chain dependency amplifies demand variability through four mechanisms (demand-signal processing, rationing game, order batching, price variation) — supports the material-dependency claim in marker 213.
- Dependencies can be material (downstream production needs upstream parts, the configuration Lee, Padmanabhan, and Whang (1997) showed amplifies demand variation through the bullwhip effect), informational (a downstream calculation needs an upstream input), temporal (a later event needs an earlier one to have occurred), logical (a theorem needs a lemma), semantic (a referring expression needs a referent, the relation Karttunen (1973) formalized in his account of presupposition projection), or institutional (a contractual obligation needs a triggering condition).
- Derivative Amplification
- amplified along the chain from consumer demand to final goods to intermediates to raw materials. Supply chains (the bullwhip effect): orders to the immediate supplier respond to the rate of change of downstream sales plus a buffer adjustment, and the amplification grows geometrically across multi-stage chains.
This sourceEstablishes the bullwhip effect: order variability amplifies across multi-echelon supply chains, with information sharing as the canonical remedy.
- amplified along the chain from consumer demand to final goods to intermediates to raw materials. Supply chains (the bullwhip effect): orders to the immediate supplier respond to the rate of change of downstream sales plus a buffer adjustment, and the amplification grows geometrically across multi-stage chains.
- Latency
- The same structural fact explains why a central bank's policy lag forces it to act pre-emptively on forecasts rather than on current data, and why a supply chain with long lead times amplifies small demand fluctuations into large swings.
This sourceSeminal analysis of supply-chain bullwhip: decomposes amplification of demand variability into four temporal mechanisms (demand-signal processing, rationing-game dynamics, order batching, price variation) driven by lead-time lags and feedback delays.
- The same structural fact explains why a central bank's policy lag forces it to act pre-emptively on forecasts rather than on current data, and why a supply chain with long lead times amplifies small demand fluctuations into large swings.
- Record-Reality Divergence
- Bullwhip-effect analysis from supply chains transfers into general analysis of how divergent records amplify through staged consumers.
This sourceAnalyzes how distorted demand records amplify through staged upstream consumers — divergent information propagating and growing along a chain.
- Bullwhip-effect analysis from supply chains transfers into general analysis of how divergent records amplify through staged consumers.
- Temporal Dynamics
- The temporal structure of information flow and material flow determines stability, not the average demand level or average inventory.
This sourceSeminal analysis of supply-chain bullwhip: decomposes amplification of demand variability into four temporal mechanisms (demand-signal processing, rationing-game dynamics, order batching, price variation) driven by lead-time lags and feedback delays.
- The temporal structure of information flow and material flow determines stability, not the average demand level or average inventory.
Verification¶
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