Revisiting the bullwhip effect: how can AI smoothen the bullwhip phenomenon?

Abstract

PurposeAlthough scholars argue that artificial intelligence (AI) represents a tool to potentially smoothen the bullwhip effect in the supply chain, only little research has examined this phenomenon. In this article, the authors conceptualize a framework that allows for a more structured management approach to examine the bullwhip effect using AI. In addition, the authors conduct a systematic literature review of this current status of how management can use AI to reduce the bullwhip effect and locate opportunities for future research.Design/methodology/approachGuided by the systematic literature review approach from Durach et al. (2017), the authors review and analyze key attributes and characteristics of both AI and the bullwhip effect from a management perspective.FindingsThe authors' findings reveal that literature examining how management can use AI to smoothen the bullwhip effect is a rather under-researched area that provides an abundance of research avenues. Based on identified AI capabilities, the authors propose three key management pillars that form the basis of the authors' Bullwhip-Smoothing-Framework (BSF): (1) digital skills, (2) leadership and (3) collaboration. The authors also critically assess current research efforts and offer suggestions for future research.Originality/valueBy providing a structured management approach to examine the link between AI and the bullwhip phenomena, this study offers scholars and managers a foundation for the advancement of theorizing how to smoothen the bullwhip effect along the supply chain.