When the bullwhip effect is an increasing function of the lead time


We show a positive demand impulse response leads to an always increasing in the lead time bullwhip effect when the order-up-to policy is used to make supply chain replenishment orders. Using the zero and poles of the ARMA(2,2) z-transform, we reveal when this demand impulse is positive.

30th Production and Operations Management Society Annual Conference, Washington, USA, 2nd-6th May