Impact of supply chain bullwhip on cash flow forecast

Rattachut Tangsucheeva, Vittaldas V. Prabhu

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

Abstract

Cash flow forecasting is very important for successful cash flow management for all supply chain partners and it becomes especially critical when there is shortage of credit or liquidity. Accurate cash flow forecasting can be limited by several factors such as data collection, payment uncertainty, and fluctuations in market demand. It is known that the bullwhip effect in a supply chain can cause wide fluctuations in upstream demand, an undesirable phenomenon that undermines supply chain's performance. In this paper we explore the impact of inventory bullwhip on the cash flow bullwhip (CFB) and consequently on the cash flow forecast. A combination of a Markov chain and exponential smoothing technique proposed by Corcoran is used as the forecasting technique in this paper. A simulation experiments are used to analyze the forecasting accuracy at different stages of supply chain and at different intensity of bullwhip effect.

Original languageEnglish (US)
Title of host publicationIIE Annual Conference and Expo 2013
PublisherInstitute of Industrial Engineers
Pages4046-4055
Number of pages10
StatePublished - 2013
EventIIE Annual Conference and Expo 2013 - San Juan, Puerto Rico
Duration: May 18 2013May 22 2013

Other

OtherIIE Annual Conference and Expo 2013
CountryPuerto Rico
CitySan Juan
Period5/18/135/22/13

Fingerprint

Supply chains
Markov processes
Experiments

All Science Journal Classification (ASJC) codes

  • Industrial and Manufacturing Engineering

Cite this

Tangsucheeva, R., & Prabhu, V. V. (2013). Impact of supply chain bullwhip on cash flow forecast. In IIE Annual Conference and Expo 2013 (pp. 4046-4055). Institute of Industrial Engineers.
Tangsucheeva, Rattachut ; Prabhu, Vittaldas V. / Impact of supply chain bullwhip on cash flow forecast. IIE Annual Conference and Expo 2013. Institute of Industrial Engineers, 2013. pp. 4046-4055
@inproceedings{8aae073a63d249719dd51dc7b1cbaa12,
title = "Impact of supply chain bullwhip on cash flow forecast",
abstract = "Cash flow forecasting is very important for successful cash flow management for all supply chain partners and it becomes especially critical when there is shortage of credit or liquidity. Accurate cash flow forecasting can be limited by several factors such as data collection, payment uncertainty, and fluctuations in market demand. It is known that the bullwhip effect in a supply chain can cause wide fluctuations in upstream demand, an undesirable phenomenon that undermines supply chain's performance. In this paper we explore the impact of inventory bullwhip on the cash flow bullwhip (CFB) and consequently on the cash flow forecast. A combination of a Markov chain and exponential smoothing technique proposed by Corcoran is used as the forecasting technique in this paper. A simulation experiments are used to analyze the forecasting accuracy at different stages of supply chain and at different intensity of bullwhip effect.",
author = "Rattachut Tangsucheeva and Prabhu, {Vittaldas V.}",
year = "2013",
language = "English (US)",
pages = "4046--4055",
booktitle = "IIE Annual Conference and Expo 2013",
publisher = "Institute of Industrial Engineers",
address = "United States",

}

Tangsucheeva, R & Prabhu, VV 2013, Impact of supply chain bullwhip on cash flow forecast. in IIE Annual Conference and Expo 2013. Institute of Industrial Engineers, pp. 4046-4055, IIE Annual Conference and Expo 2013, San Juan, Puerto Rico, 5/18/13.

Impact of supply chain bullwhip on cash flow forecast. / Tangsucheeva, Rattachut; Prabhu, Vittaldas V.

IIE Annual Conference and Expo 2013. Institute of Industrial Engineers, 2013. p. 4046-4055.

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

TY - GEN

T1 - Impact of supply chain bullwhip on cash flow forecast

AU - Tangsucheeva, Rattachut

AU - Prabhu, Vittaldas V.

PY - 2013

Y1 - 2013

N2 - Cash flow forecasting is very important for successful cash flow management for all supply chain partners and it becomes especially critical when there is shortage of credit or liquidity. Accurate cash flow forecasting can be limited by several factors such as data collection, payment uncertainty, and fluctuations in market demand. It is known that the bullwhip effect in a supply chain can cause wide fluctuations in upstream demand, an undesirable phenomenon that undermines supply chain's performance. In this paper we explore the impact of inventory bullwhip on the cash flow bullwhip (CFB) and consequently on the cash flow forecast. A combination of a Markov chain and exponential smoothing technique proposed by Corcoran is used as the forecasting technique in this paper. A simulation experiments are used to analyze the forecasting accuracy at different stages of supply chain and at different intensity of bullwhip effect.

AB - Cash flow forecasting is very important for successful cash flow management for all supply chain partners and it becomes especially critical when there is shortage of credit or liquidity. Accurate cash flow forecasting can be limited by several factors such as data collection, payment uncertainty, and fluctuations in market demand. It is known that the bullwhip effect in a supply chain can cause wide fluctuations in upstream demand, an undesirable phenomenon that undermines supply chain's performance. In this paper we explore the impact of inventory bullwhip on the cash flow bullwhip (CFB) and consequently on the cash flow forecast. A combination of a Markov chain and exponential smoothing technique proposed by Corcoran is used as the forecasting technique in this paper. A simulation experiments are used to analyze the forecasting accuracy at different stages of supply chain and at different intensity of bullwhip effect.

UR - http://www.scopus.com/inward/record.url?scp=84900319616&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84900319616&partnerID=8YFLogxK

M3 - Conference contribution

SP - 4046

EP - 4055

BT - IIE Annual Conference and Expo 2013

PB - Institute of Industrial Engineers

ER -

Tangsucheeva R, Prabhu VV. Impact of supply chain bullwhip on cash flow forecast. In IIE Annual Conference and Expo 2013. Institute of Industrial Engineers. 2013. p. 4046-4055