Study of Bullwhip Caused By Demand Forcast, Lead Time and Distortion in Information and Its Effect on SME’s Performance A Study of Food and Retail Sector

Abstract

Bullwhip is fluctuation in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers. Supply chain efficiency and effectiveness is achieved through mitigating the bullwhip effect. Bullwhip effects organization’s overall performance. This research is based on food sector and Retail stores operating in Rawalpindi/Islamabad. The population size for this study was around 250 outlets/stores from where sample of 152 has been selected. The primary data for this research was collected through questionnaires. The independent variable in this study is Bullwhip effect and dependent variable is SME Performance. The latent variables used in this study are demand forecasting, lead time, and distortion in information, sales promotion for Independent variable and sales generated and profit for Dependent variable. This study examines how the distortion in information, increase or decrease in lead time, false demand forecasting increases the bullwhip effect and how bullwhip affects the SME performance in country like Pakistan.