Inventory management and the bullwhip effect during the 2007-2009 recession: Evidence from the manufacturing sector

Kevin Dooley; Tingting Yan; Srimathy Mohan; Mohan Gopalakrishnan

doi:10.1111/j.1745-493X.2009.03183.x

Inventory management and the bullwhip effect during the 2007-2009 recession: Evidence from the manufacturing sector

Kevin Dooley, Tingting Yan, Srimathy Mohan, Mohan Gopalakrishnan

Research output: Contribution to journal › Comment/debate › peer-review

65 Scopus citations

Abstract

The 2007-2009 recession led to a significant decrease in consumer demand. We use monthly inventory and sales data to study the impact of the recession on manufacturers, wholesalers and retailers in the U.S. manufacturing sector. We find wholesalers responded late and drastically, indicative of a bullwhip effect, while retailers responded quickly and more conservatively, indicative of environmental smoothing. Smoothing of demand and inventory is demonstrated as an alternative response to a significant change in demand.

Original language	English (US)
Pages (from-to)	12-18
Number of pages	7
Journal	Journal of Supply Chain Management
Volume	46
Issue number	1
DOIs	https://doi.org/10.1111/j.1745-493X.2009.03183.x
State	Published - Jan 1 2010

Keywords

Bullwhip effect
Consumer behavior
Demand variation
Economic crisis
Inventory management
Manufacturer
Manufacturing sector
Recession
Retailer
Sales
Supply chain management
Wholesaler

ASJC Scopus subject areas

Management Information Systems
Economics, Econometrics and Finance (miscellaneous)
Marketing

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10.1111/j.1745-493X.2009.03183.x

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abstract = "The 2007-2009 recession led to a significant decrease in consumer demand. We use monthly inventory and sales data to study the impact of the recession on manufacturers, wholesalers and retailers in the U.S. manufacturing sector. We find wholesalers responded late and drastically, indicative of a bullwhip effect, while retailers responded quickly and more conservatively, indicative of environmental smoothing. Smoothing of demand and inventory is demonstrated as an alternative response to a significant change in demand.",

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Inventory management and the bullwhip effect during the 2007-2009 recession: Evidence from the manufacturing sector

Abstract

Keywords

ASJC Scopus subject areas

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