BULLWHIP EFFECT IN SUPPLY CHAIN CASH FLOW

Open Access
Author:
Liu, Xiaosui
Graduate Program:
Industrial Engineering
Degree:
Master of Science
Document Type:
Master Thesis
Date of Defense:
None
Committee Members:
  • Vittaldas V Prabhu, Thesis Advisor
Keywords:
  • bullwhip effect
  • cash flow
  • supply chain
Abstract:
Supply chain operations and management practices can provide us an insight into the dynamics of financial problems in enterprises. This serves as the premise for the recently emerging inter-disciplinary research subject of supply chain and financial management. In this thesis, a novel supply chain cash flow model is developed, which captures the cash flow dynamics based on supply chain operations. Based on that, the amplifications of cash flow variations among the supply chain members are discovered. It is called cash flow bullwhip effect due to its similarity to the bullwhip effect of product orders in supply chain. The cash bullwhip effect may have similar impacts on enterprise financial operations as the bullwhip effect of product orders does on supply chain operations. It is further discovered from this work that the causes for bullwhip of product orders will further cause cash flow bullwhip, and reducing the product order bullwhip level can significantly mitigate the cash flow bullwhip.