Decoupling paradigm of push-pull theory of oscillation in the FMCG industry

Abstract

The amplification of demand order variability germinates from distorted demand information upstream while sometimes reacting to demand-driven inventory positioning influenced by the custodians of downstream information. This studyuses factor analysis to tentatively develop a supply chain model to enhance the competence of supply chain performance in terms of responsiveness, connectivity and agility. The results of the analysis indicate that the magnitude of control on the bullwhip effect and access to economic information on demand orders in the supply chain network are associated with the modelling of the push-pull theory of oscillation on three mirror dimensions of supply chain interrelationships (inventory positioning, information sharing and electronically-enabled supply chain systems). The findings provide the perspective on managing amplification in consumer demand order variability upstream in the supply chain network while enhancing the overall efficiency of supply chain performance. This article provides insight into the use of innovative strategies and modern technology to enhance supply chain visibility through integrated systems networks.

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