The Impact of Servicization of Manufacturing Firms on Bullwhip Effects
By Jiang Shenyang, Advanced Institute of Business, Tongji University, China, shenyangjiang@tongji.edu.cn | Jiang Zhibin, Antai College of Economics and Management, Shanghai Jiao Tong University, China, zbjiang@sjtu.edu.cn | Niu Yimeng, Antai College of Economics and Management, Shanghai Jiao Tong University, China, yimeng_niu@sjtu.edu.cn | Wu Jing, CUHK Business School, The Chinese University of Hong Kong, Hong Kong, jingwu@cuhk.edu.hk
Abstract
Service-oriented economies have triggered manufacturing firms to increasingly integrate services into their businesses. This section delves into the impact of servicization on two key bullwhip effects: the felt bullwhip, representing demand variability, and the intra-firm bullwhip, reflecting demand distortion. Manufacturers typically offer services complementing product sales, like maintenance and repair, and those replacing product sales, like machine hours. Employing text mining techniques, two service categories in 10-K reports are identified. Complementing services initially lead to a decrease in demand variability, while substituting services subsequently results in diminished demand distortion.
Frontiers in Supply Chain Finance and Risk Management
This monograph contains eight thought-leading contributions on various topics related to supply chain finance and risk management: “Disruption Mitigation and Pricing Flexibility” by Oben Ceryan and Florian Lücker. “Optimal Newsvendor IRM with Downside Risk” by Paolo Guiotto and Andrea Roncoroni. “Competitive Forward and Spot Trading Under Yield Uncertainty” by Lusheng Shao, Derui Wang, and Xiaole Wu. “The Impact of Commodity Price Uncertainty on the Economic Value of Waste-to-Energy Conversion in Agricultural Processing” by Bin Li, Onur Boyabatlı, and Buket Avcı. “Corporate Renewable Procurement” by Selvaprabu Nadarajah. “Blockchain-Based Digital Payment Obligations for Trade Finance” by Jing Hou, Burak Kazaz, and Fasheng Xu. “Long-term Service Agreement in Power Systems” by Panos Kouvelis, Hirofumi Matsuo, Yixuan Xiao, and Quan Yuan. “The Bullwhip Effect in Servicized Manufacturers” by Jiang Shenyang, Jiang Zhibin, Niu Yimeng, and Wu Jing.
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Foundations and Trends® in Technology, Information and Operations Management, Volume 16, Issue 3-4 Special Issue: Frontiers in Supply Chain Finance and Risk Management
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