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The Importance of the Bullwhip Effect in Services Supply Chain and a Research in the Telecommunication Sector

Year 2024, Volume: 8 Issue: 14, 1 - 14, 13.08.2024

Abstract

The factors that cause the bullwhip effect are described well in the goods supply chain, but those factors have different validity regarding services. Five different situations could explain the bullwhip effect in service supply chains. Those are backlogs, customer feedback frequency, the return point, waste impact, and the lack of administrative data. Within the scope of research, we are trying to examine the causes of the bullwhip effect in the service sector in Turkey. Therefore, one of the companies in the telecommunications industry in the service sector in Turkey was chosen as the scope of research. In this case, the sample was selected according to the probability of case occurrence instead of random sampling because of the ongoing research to develop the theory in the service sector. For these reasons, research is exploratory research. In this context, the data collected by interviews was classified with content analysis and tried to illuminate the research question and fifteen propositions associated with research questions. The causes of the bullwhip effect are discussed within the limits of samples.

Thanks

This Study was produced from the master thesis titled " The Importance of Bullwhip Effect in Information Processing in Supply Chain and A Research " prepared by Muhammet Ali AYTAÇ under the supervision of Prof. Dr. Mehmet Yaman ÖZTEK and accepted by Galatasaray University Social Sciences Institute.

References

  • Akkermans, H., and Voss, C. (2013). The service bullwhip effect. International Journal of Operations and Production Management, 33(6), 765-788. DOI: /10.1108/IJOPM-10-2012-0402
  • Anderson Jr, E. G., Morrice, D. J., and Lundeen, G. (2005). The “physics” of capacity and backlog management in service and custom manufacturing supply chains. System Dynamics Review: The Journal of the System Dynamics Society, 21(3), 217–247. DOI: /10.1002/sdr.319
  • Cook, D. P., Goh, C. H., and Chung, C. H. (1999). Service typologies: A state of the art survey. Production and Operations Management, 8(3), 318-338. DOI: /10.1111/j.1937-5956.1999.tb00311.x
  • Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532-550. DOI: /10.5465/amr.1989.4308385
  • Ellram, L. M., Tate, W. L., and Billington, C. (2004). Understanding and managing the services supply chain. Journal of Supply Chain Management, 40(3), 17-32. DOI: /10.1111/j.1745-493X.2004.tb00176.x
  • Frei, F. X. (2006). Breaking the trade-off between efficiency and service. Harvard Business Review, 84(11), 93–156. Retrieved From: hbr.org
  • Holweg, M., Disney, S., Holmström, J., and Småros, J. (2005). Supply chain collaboration: Making sense of the strategy continuum. European Management Journal, 23(2), 170-181. DOI: /10.1016/j.emj.2005.02.008
  • Kimes, S. E. (1989). Yield management: a tool for capacity-considered service firms. Journal of Operations Management, 8(4), 348–363. DOI: /10.1016/0272-6963(89)90035-1
  • Lee, H. L., Padmanabhan, V., and Whang, S (1997). The bullwhip effect in supply chains, Sloan Management Review, 38 (3) Spring, 93–102. Retrieved from: https://rzabdulaziz.wordpress.com
  • Malhotra, N. K. (2020). Marketing research: an applied orientation. London: Pearson Education Limited. McCullen, P., and Towill, D. (2002). Diagnosis and reduction of bullwhip in supply chains. Supply Chain Management: An International Journal, 7(3), 164–179. DOI: /10.1108/13598540210436612
  • Oliva, R., and Sterman, J. D. (2001). Cutting corners and working overtime: Quality erosion in the service industry. Management Science, 47(7), 894-914. DOI: /10.1287/mnsc.47.7.894.9807
  • Rajani, R. L., Heggde, G. S., Kumar, R., and Bangwal, D. (2023). Demand management approaches in the services sector influence company performance. International Journal of Productivity and Performance Management, 72(10), 2808-2837. DOI: /10.1108/IJPPM-02-2022-0080
  • Ramish, A., Hamid, A., and Nadarajah, D. (2022). Service supply chain (SSC): A systematic literature review (1999-2020). Operations and Supply Chain Management: An International Journal, 15(2), 280-302. DOI: /10.31387/oscm0490347
  • Sampson, S. E. (2000). Customer‐supplier duality and bidirectional supply chains in service organizations. International journal of service industry management, 11(4), 348–364. DOI: /10.1108/09564230010355377
  • Sampson, S. E. (2012). Visualizing service operations. Journal of Service Research, 15(2), 182–198. DOI: /10.1177/1094670511435541
  • Towill, D. R., Zhou, L., and Disney, S. M. (2007). Reducing the bullwhip effect: Looking through the appropriate lens. International Journal of Production Economics, 108(1-2), 444–453. DOI: /10.1016/j.ijpe.2006.12.024
  • Vargo, S. L., and Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1-17. DOI: /10.1509/jmkg.68.1.1.24036
  • Wikner, J., Towill, D. R., and Naim, M. (1991). Smoothing supply chain dynamics. International Journal of Production Economics, 22(3), 231–248. DOI: /10.1080/09511929108944496
  • Yıldırım, A., and Simsek, H. (2008). Sosyal bilimlerde nitel araştırma yöntemleri. Ankara: Seçkin Yayıncılık.

Hizmet Tedarik Zincirlerinde Kamçı Etkisinin Önemi ve Telekomünikasyon Sektöründe Bir Araştırma

Year 2024, Volume: 8 Issue: 14, 1 - 14, 13.08.2024

Abstract

Kırbaç etkisine neden olan faktörler mal tedarik zincirinde iyi tanımlanmış ancak bu faktörlerin hizmetlere ilişkin geçerliliği tartışmalıdır. Hizmet tedarik zincirlerinde kırbaç etkisini beş farklı durum açıklayabilir. Bunlar birikmiş işler, müşteri geri bildirim sıklığı, geri dönüş noktası, atık etkisi ve idari veri eksikliğidir. Araştırma kapsamında Türkiye'de hizmet sektöründe kırbaç etkisinin nedenlerini incelemeye çalışıyoruz. Bu nedenle araştırmanın kapsamı olarak Türkiye'de hizmet sektöründe yer alan telekomünikasyon sektöründeki şirketlerden biri seçilmiştir. Bu durumda, hizmet sektöründe teoriyi geliştirmek için devam eden araştırmalar nedeniyle örneklem, tesadüfi örnekleme yerine vakanın ortaya çıkma olasılığına göre seçilmiştir. Bu nedenlerden dolayı araştırma keşfedici araştırmadır. Bu bağlamda görüşmeler yoluyla toplanan veriler içerik analizi ile sınıflandırılarak araştırma sorusu ve araştırma sorularına ilişkin on beş önerme aydınlatılmaya çalışılmıştır. Kırbaç etkisinin nedenleri örneklem sınırları dahilinde tartışılmıştır.

References

  • Akkermans, H., and Voss, C. (2013). The service bullwhip effect. International Journal of Operations and Production Management, 33(6), 765-788. DOI: /10.1108/IJOPM-10-2012-0402
  • Anderson Jr, E. G., Morrice, D. J., and Lundeen, G. (2005). The “physics” of capacity and backlog management in service and custom manufacturing supply chains. System Dynamics Review: The Journal of the System Dynamics Society, 21(3), 217–247. DOI: /10.1002/sdr.319
  • Cook, D. P., Goh, C. H., and Chung, C. H. (1999). Service typologies: A state of the art survey. Production and Operations Management, 8(3), 318-338. DOI: /10.1111/j.1937-5956.1999.tb00311.x
  • Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532-550. DOI: /10.5465/amr.1989.4308385
  • Ellram, L. M., Tate, W. L., and Billington, C. (2004). Understanding and managing the services supply chain. Journal of Supply Chain Management, 40(3), 17-32. DOI: /10.1111/j.1745-493X.2004.tb00176.x
  • Frei, F. X. (2006). Breaking the trade-off between efficiency and service. Harvard Business Review, 84(11), 93–156. Retrieved From: hbr.org
  • Holweg, M., Disney, S., Holmström, J., and Småros, J. (2005). Supply chain collaboration: Making sense of the strategy continuum. European Management Journal, 23(2), 170-181. DOI: /10.1016/j.emj.2005.02.008
  • Kimes, S. E. (1989). Yield management: a tool for capacity-considered service firms. Journal of Operations Management, 8(4), 348–363. DOI: /10.1016/0272-6963(89)90035-1
  • Lee, H. L., Padmanabhan, V., and Whang, S (1997). The bullwhip effect in supply chains, Sloan Management Review, 38 (3) Spring, 93–102. Retrieved from: https://rzabdulaziz.wordpress.com
  • Malhotra, N. K. (2020). Marketing research: an applied orientation. London: Pearson Education Limited. McCullen, P., and Towill, D. (2002). Diagnosis and reduction of bullwhip in supply chains. Supply Chain Management: An International Journal, 7(3), 164–179. DOI: /10.1108/13598540210436612
  • Oliva, R., and Sterman, J. D. (2001). Cutting corners and working overtime: Quality erosion in the service industry. Management Science, 47(7), 894-914. DOI: /10.1287/mnsc.47.7.894.9807
  • Rajani, R. L., Heggde, G. S., Kumar, R., and Bangwal, D. (2023). Demand management approaches in the services sector influence company performance. International Journal of Productivity and Performance Management, 72(10), 2808-2837. DOI: /10.1108/IJPPM-02-2022-0080
  • Ramish, A., Hamid, A., and Nadarajah, D. (2022). Service supply chain (SSC): A systematic literature review (1999-2020). Operations and Supply Chain Management: An International Journal, 15(2), 280-302. DOI: /10.31387/oscm0490347
  • Sampson, S. E. (2000). Customer‐supplier duality and bidirectional supply chains in service organizations. International journal of service industry management, 11(4), 348–364. DOI: /10.1108/09564230010355377
  • Sampson, S. E. (2012). Visualizing service operations. Journal of Service Research, 15(2), 182–198. DOI: /10.1177/1094670511435541
  • Towill, D. R., Zhou, L., and Disney, S. M. (2007). Reducing the bullwhip effect: Looking through the appropriate lens. International Journal of Production Economics, 108(1-2), 444–453. DOI: /10.1016/j.ijpe.2006.12.024
  • Vargo, S. L., and Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1-17. DOI: /10.1509/jmkg.68.1.1.24036
  • Wikner, J., Towill, D. R., and Naim, M. (1991). Smoothing supply chain dynamics. International Journal of Production Economics, 22(3), 231–248. DOI: /10.1080/09511929108944496
  • Yıldırım, A., and Simsek, H. (2008). Sosyal bilimlerde nitel araştırma yöntemleri. Ankara: Seçkin Yayıncılık.
There are 19 citations in total.

Details

Primary Language English
Subjects Econometrics (Other)
Journal Section Articles
Authors

Muhammet Ali Aytaç 0000-0003-4835-4441

Mehmet Yaman Öztek 0000-0002-1129-5145

Publication Date August 13, 2024
Submission Date July 17, 2024
Acceptance Date July 22, 2024
Published in Issue Year 2024 Volume: 8 Issue: 14

Cite

APA Aytaç, M. A., & Öztek, M. Y. (2024). The Importance of the Bullwhip Effect in Services Supply Chain and a Research in the Telecommunication Sector. Econharran, 8(14), 1-14.
AMA Aytaç MA, Öztek MY. The Importance of the Bullwhip Effect in Services Supply Chain and a Research in the Telecommunication Sector. Econharran. August 2024;8(14):1-14.
Chicago Aytaç, Muhammet Ali, and Mehmet Yaman Öztek. “The Importance of the Bullwhip Effect in Services Supply Chain and a Research in the Telecommunication Sector”. Econharran 8, no. 14 (August 2024): 1-14.
EndNote Aytaç MA, Öztek MY (August 1, 2024) The Importance of the Bullwhip Effect in Services Supply Chain and a Research in the Telecommunication Sector. Econharran 8 14 1–14.
IEEE M. A. Aytaç and M. Y. Öztek, “The Importance of the Bullwhip Effect in Services Supply Chain and a Research in the Telecommunication Sector”, Econharran, vol. 8, no. 14, pp. 1–14, 2024.
ISNAD Aytaç, Muhammet Ali - Öztek, Mehmet Yaman. “The Importance of the Bullwhip Effect in Services Supply Chain and a Research in the Telecommunication Sector”. Econharran 8/14 (August 2024), 1-14.
JAMA Aytaç MA, Öztek MY. The Importance of the Bullwhip Effect in Services Supply Chain and a Research in the Telecommunication Sector. Econharran. 2024;8:1–14.
MLA Aytaç, Muhammet Ali and Mehmet Yaman Öztek. “The Importance of the Bullwhip Effect in Services Supply Chain and a Research in the Telecommunication Sector”. Econharran, vol. 8, no. 14, 2024, pp. 1-14.
Vancouver Aytaç MA, Öztek MY. The Importance of the Bullwhip Effect in Services Supply Chain and a Research in the Telecommunication Sector. Econharran. 2024;8(14):1-14.