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The impact of stochastic lead times on the bullwhip effect – an empirical insight

Nielsen P., Michna Z.

Management and Production Engineering Review

2018

Vol. 9, No. 1

65--70

In this article, we review the research state of the bullwhip effect in supply chains with stochastic lead times. We analyze problems arising in a supply chain when lead times are not deterministic. Using real data from a supply chain, we confirm that lead times are stochastic and can be modeled by a sequence of independent identically distributed random variables. This underlines the need to further study supply chains with stochastic lead times and model the behavior of such chains.