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

Research output: Contribution to journalArticle

41 Citations (Scopus)

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 languageEnglish (US)
Pages (from-to)12-18
Number of pages7
JournalJournal of Supply Chain Management
Volume46
Issue number1
DOIs
StatePublished - 2010

Fingerprint

Sales
Recession
Manufacturing sector
Retailers
Smoothing
Bullwhip effect
Wholesalers
Inventory management
Consumer demand

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

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

Cite this

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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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