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


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
Number of pages10
ISBN (Print)9783030859015
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


ConferenceIFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2021

All Science Journal Classification (ASJC) codes

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

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