Problem definition: We study the bullwhip effect and analyze the impact of human behavior. We separate rational ordering in response to increasing incoming orders from irrational ordering. Academic/Practical Relevance: Prior research has shown that the bullwhip effect occurs in about two-thirds...

The manufacturing complexity of many high-tech products results in a substantial variation in the quality of the units produced. Post manufacturing, the units are classified into vertically differentiated products. These products are typically obtained in uncontrollable fractions, leading to...