Bullwhip dependency of participants' risk preferences in the supply chain

Abstract

This paper examines the causes of risk preferences, as one of the personality traits, of the participants in the supply chain on inventory and backorder costs. Based on test results the participants are divided into two groups: risk - seeking and risk - averse. Two teams are formed who simulated a beer game. It is shown that there are differences in costs between these teams.

Keywords

• risk preferences
• bullwhip effect
• supply chains