This paper investigates whether the bullwhip has economic consequences at the firm level. In particular, we examine the relation between the bullwhip and various accounting/financial performance measures including equity returns, cash flows, earnings, and earnings attributes such as earnings...

One of the critical factors that impacts outsourcing decisions in supply chains is the bullwhip effect (BE). This effect refers to the ubiquitous phenomenon whereby firm-level production is more volatile than its demand. The literature assumes that the BE increases costs and reduces...