Bullwhip in a Spanish Shop

MPRA Paper from University Library of Munich, Germany

Abstract: Sebastian de la Fuente is the sixth largest supermarket chain in the Basque region of Spain. It has a novel dataset of 108,605 observations on 3,745 SKUs, collected for almost 2 1/2 years. I find the bullwhip effect in the data: at least 80% of the SKUs have a bigger variance in supplies than variance in sales. I also test six potential causes of the bullwhip, and report clear evidence for three: a rational cause (batching by the supermarket) and two behavioral ones (under-reaction to lags and coordination risks).

Keywords: Bullwhip effect; retail; operations management; behavioral (search for similar items in EconPapers)
JEL-codes: D24 D82 E32 M11 (search for similar items in EconPapers)
Date: 2005-09-18
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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