Cash-Flow Bullwhip Effect in the Semiconductor Industry: An Empirical Investigation

Chintan Patil, Vittaldas V. Prabhu

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Cash flow bullwhip effect (CFB) is the amplification of working capital variance along a supply chain. High CFB is a sign of inefficient working capital (WC) management and can lead to a significant reduction in financial resilience. CFB can be used as a measure of a company’s ability to manage operational risks and corresponding resilience. We investigate the existence of CFB and the traditional bullwhip effect (BWE) in a sample of 238 semiconductor companies over 2010-Q1 to 2020-Q4. These companies' average CFB and BWE are 3.95 and 2.77, respectively. We find that CFB and BWE of a semiconductor company are negatively associated with company size, degree of seasonality in demand, and company’s payment policy conservativeness; and positively associated with procurement and payment lead times.

Original languageEnglish (US)
Title of host publicationAdvances in Production Management Systems. Artificial Intelligence for Sustainable and Resilient Production Systems - IFIP WG 5.7 International Conference, APMS 2021, Proceedings
EditorsAlexandre Dolgui, Alain Bernard, David Lemoine, Gregor von Cieminski, David Romero
PublisherSpringer Science and Business Media Deutschland GmbH
Pages68-77
Number of pages10
ISBN (Print)9783030859015
DOIs
StatePublished - 2021
EventIFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2021 - Nantes, France
Duration: Sep 5 2021Sep 9 2021

Publication series

NameIFIP Advances in Information and Communication Technology
Volume631 IFIP
ISSN (Print)1868-4238
ISSN (Electronic)1868-422X

Conference

ConferenceIFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2021
Country/TerritoryFrance
CityNantes
Period9/5/219/9/21

All Science Journal Classification (ASJC) codes

  • Information Systems
  • Computer Networks and Communications
  • Information Systems and Management

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