The Impact of Bullwhip Effect on the Cash Flow in Two-Parallel Supply Chain Systems with the Competition Effect
While considering the competition effect and market share, this study discusses how the cash flow bullwhip effect (CFBE) is impacted in two-product and two-parallel supply chain systems by comparing the situation that it has one kind of product in two-level supply chain (SC). Specifically, the study...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Wiley
2022-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2022/6079217 |
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| author | Xingji Chen Jing Zeng Xigang Yuan |
| author_facet | Xingji Chen Jing Zeng Xigang Yuan |
| author_sort | Xingji Chen |
| collection | DOAJ |
| description | While considering the competition effect and market share, this study discusses how the cash flow bullwhip effect (CFBE) is impacted in two-product and two-parallel supply chain systems by comparing the situation that it has one kind of product in two-level supply chain (SC). Specifically, the study aimed to examine two-product and two-parallel SC systems that include two suppliers and two retailers. Assuming that the demand function is a linear relationship of price self-sensitivity coefficient and price cross-sensitivity coefficient, which is an AR(1) process, two retailers share the demand. After that, the quantitative equation of the CFBE was deduced from two-product and two-parallel SC systems. Finally, we get the condition that the competition effect and the market share increase or decrease the CFBE, which was in contrast to the situation without the competition effect and the market share. The paper suggested that the manager can cooperate with their partner if two products are substitutable. On the other hand, the firm should improve the forecasting accuracy of the customer’s demand and improve the service quality so that it can increase the market share and reduce the CFBE in two-parallel SC systems. |
| format | Article |
| id | doaj-art-6f19d1ad5b8b41fe9e2b1491940351fa |
| institution | Kabale University |
| issn | 1607-887X |
| language | English |
| publishDate | 2022-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-6f19d1ad5b8b41fe9e2b1491940351fa2025-02-03T06:11:18ZengWileyDiscrete Dynamics in Nature and Society1607-887X2022-01-01202210.1155/2022/6079217The Impact of Bullwhip Effect on the Cash Flow in Two-Parallel Supply Chain Systems with the Competition EffectXingji Chen0Jing Zeng1Xigang Yuan2Luzhou Vocational and Technical CollegeLuzhou Vocational and Technical CollegeBusiness SchoolWhile considering the competition effect and market share, this study discusses how the cash flow bullwhip effect (CFBE) is impacted in two-product and two-parallel supply chain systems by comparing the situation that it has one kind of product in two-level supply chain (SC). Specifically, the study aimed to examine two-product and two-parallel SC systems that include two suppliers and two retailers. Assuming that the demand function is a linear relationship of price self-sensitivity coefficient and price cross-sensitivity coefficient, which is an AR(1) process, two retailers share the demand. After that, the quantitative equation of the CFBE was deduced from two-product and two-parallel SC systems. Finally, we get the condition that the competition effect and the market share increase or decrease the CFBE, which was in contrast to the situation without the competition effect and the market share. The paper suggested that the manager can cooperate with their partner if two products are substitutable. On the other hand, the firm should improve the forecasting accuracy of the customer’s demand and improve the service quality so that it can increase the market share and reduce the CFBE in two-parallel SC systems.http://dx.doi.org/10.1155/2022/6079217 |
| spellingShingle | Xingji Chen Jing Zeng Xigang Yuan The Impact of Bullwhip Effect on the Cash Flow in Two-Parallel Supply Chain Systems with the Competition Effect Discrete Dynamics in Nature and Society |
| title | The Impact of Bullwhip Effect on the Cash Flow in Two-Parallel Supply Chain Systems with the Competition Effect |
| title_full | The Impact of Bullwhip Effect on the Cash Flow in Two-Parallel Supply Chain Systems with the Competition Effect |
| title_fullStr | The Impact of Bullwhip Effect on the Cash Flow in Two-Parallel Supply Chain Systems with the Competition Effect |
| title_full_unstemmed | The Impact of Bullwhip Effect on the Cash Flow in Two-Parallel Supply Chain Systems with the Competition Effect |
| title_short | The Impact of Bullwhip Effect on the Cash Flow in Two-Parallel Supply Chain Systems with the Competition Effect |
| title_sort | impact of bullwhip effect on the cash flow in two parallel supply chain systems with the competition effect |
| url | http://dx.doi.org/10.1155/2022/6079217 |
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