TY - GEN
T1 - Cash-Flow Bullwhip Effect in the Semiconductor Industry
T2 - IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2021
AU - Patil, Chintan
AU - Prabhu, Vittaldas V.
N1 - Publisher Copyright:
© 2021, IFIP International Federation for Information Processing.
PY - 2021
Y1 - 2021
N2 - Cash flow bullwhip effect (CFB) is the amplification of working capital variance along a supply chain. High CFB is a sign of inefficient working capital (WC) management and can lead to a significant reduction in financial resilience. CFB can be used as a measure of a company’s ability to manage operational risks and corresponding resilience. We investigate the existence of CFB and the traditional bullwhip effect (BWE) in a sample of 238 semiconductor companies over 2010-Q1 to 2020-Q4. These companies' average CFB and BWE are 3.95 and 2.77, respectively. We find that CFB and BWE of a semiconductor company are negatively associated with company size, degree of seasonality in demand, and company’s payment policy conservativeness; and positively associated with procurement and payment lead times.
AB - Cash flow bullwhip effect (CFB) is the amplification of working capital variance along a supply chain. High CFB is a sign of inefficient working capital (WC) management and can lead to a significant reduction in financial resilience. CFB can be used as a measure of a company’s ability to manage operational risks and corresponding resilience. We investigate the existence of CFB and the traditional bullwhip effect (BWE) in a sample of 238 semiconductor companies over 2010-Q1 to 2020-Q4. These companies' average CFB and BWE are 3.95 and 2.77, respectively. We find that CFB and BWE of a semiconductor company are negatively associated with company size, degree of seasonality in demand, and company’s payment policy conservativeness; and positively associated with procurement and payment lead times.
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U2 - 10.1007/978-3-030-85902-2_8
DO - 10.1007/978-3-030-85902-2_8
M3 - Conference contribution
AN - SCOPUS:85115213608
SN - 9783030859015
T3 - IFIP Advances in Information and Communication Technology
SP - 68
EP - 77
BT - Advances in Production Management Systems. Artificial Intelligence for Sustainable and Resilient Production Systems - IFIP WG 5.7 International Conference, APMS 2021, Proceedings
A2 - Dolgui, Alexandre
A2 - Bernard, Alain
A2 - Lemoine, David
A2 - von Cieminski, Gregor
A2 - Romero, David
PB - Springer Science and Business Media Deutschland GmbH
Y2 - 5 September 2021 through 9 September 2021
ER -