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Prevalence of Bullwhip Effect in Hospitals

Prevalence of Bullwhip Effect in Hospitals

Kannan Sethuraman, Devanath Tirupati
Copyright: © 2008 |Pages: 8
ISBN13: 9781599048895|ISBN10: 1599048892|EISBN13: 9781599048901
DOI: 10.4018/978-1-59904-889-5.ch135
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MLA

Sethuraman, Kannan, and Devanath Tirupati. "Prevalence of Bullwhip Effect in Hospitals." Encyclopedia of Healthcare Information Systems, edited by Nilmini Wickramasinghe and Eliezer Geisler, IGI Global, 2008, pp. 1077-1084. https://doi.org/10.4018/978-1-59904-889-5.ch135

APA

Sethuraman, K. & Tirupati, D. (2008). Prevalence of Bullwhip Effect in Hospitals. In N. Wickramasinghe & E. Geisler (Eds.), Encyclopedia of Healthcare Information Systems (pp. 1077-1084). IGI Global. https://doi.org/10.4018/978-1-59904-889-5.ch135

Chicago

Sethuraman, Kannan, and Devanath Tirupati. "Prevalence of Bullwhip Effect in Hospitals." In Encyclopedia of Healthcare Information Systems, edited by Nilmini Wickramasinghe and Eliezer Geisler, 1077-1084. Hershey, PA: IGI Global, 2008. https://doi.org/10.4018/978-1-59904-889-5.ch135

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Abstract

Lee, et al. (1997b) state the impact of increased volatility as, “Distorted information from one end of the supply chain to the other can lead to excessive inventory investment, poor customer service, lost revenues, ineffective transportation, and missed production schedules.” Although there is a growing body of research on managing the bullwhip effect in manufacturingbased supply chains (Baganha & Cohen, 1998; Chen, Drezner, Ryan & Simchi-Levi, 2000; Chen, Ryan & Simchi-Levi, 1997; Metter, 1997), little research exists on its presence in service chains, and we are unaware of any reported research on this subject. In this chapter, we present several examples of distorted information in hospitals resulting in variability amplification and causing inefficiencies similar to the bullwhip effect. We highlight the underlying causes for this phenomenon and propose actions that can mitigate the detrimental impact of this distortion.

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