Title: Examining the causes of the 'bullwhip effect': a study of the Qinhuangdao Port's coal supply chain

Authors: Hongmei Chen; Haiju Hu; Meimei Yang

Addresses: Economics and Management School, Yanshan University, Qinhuangdao Hebei 066004, China; Postdoctoral Station, Hebei Port Group CO. LTD, Qinhuangdao, Hebei 066004, China ' Research Center for Regional Economic Development and Economics and Management School, Yanshan University, Qinhuangdao Hebei 066004, China ' Bohai Polytechnic Vocational College, Cangzhou, Hebei 061000, China

Abstract: Although in recent years the coal business of Qinhuangdao Port maintains relatively efficient operations, the problem of coal inventory overstock remains. The main reason of such problem is the bullwhip effect. In this study, we analysis the causes of the bullwhip effect of Qinhuangdao Port's coal supply chain and examine the relative contribution of each of the causes of the bullwhip effect. Simulation models developed by Witness are used in collecting data. A factorial design is used to measure the relative contributions of the causes of the bullwhip effect. We find that amendatory inventory is the most significant one among the causes, followed by demand forecast updating, number of echelons, information delay, transportation delay and order batching. The result shows the most seriously causes of the bullwhip effect of Qinhuangdao Port's coal supply chain and provides possible ways to mitigate the bullwhip effect.

Keywords: bullwhip effect; coal supply chain; Qinhuangdao Port; factorial design; witness.

DOI: 10.1504/IJMTM.2018.093363

International Journal of Manufacturing Technology and Management, 2018 Vol.32 No.4/5, pp.470 - 487

Received: 25 Nov 2016
Accepted: 25 Mar 2017
Published online: 25 Jul 2018 *

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