Exploring omni-channel bullwhip effect: The role of channel integration and consumer channel preference

The bullwhip effect is a prevalent phenomenon in supply chain management. With the emergence of omni-channel retailing, the structure of the supply chain has become more complex, leading to increased management challenges. In this paper, we aim to measure the bullwhip effect of an omni-channel supply chain with both offline and online channels and explore the impact of consumer channel preference and channel integration on the bullwhip effect. We set up a closed-form expression of the omni-channel bullwhip effect in which the retailer exhibits a price-sensitive demand model with a first-order autoregressive uniform pricing process, and the order-up-to level is calculated based on future demand forecast. Through mathematical and numerical analysis, we find that channel integration degree has a positive effect on reducing the omni-channel bullwhip effect, while the effect of consumer channel preference on the omni-channel bullwhip effect increases and then decreases. By comparing the omni-channel bullwhip effect with the single-channel one, we identify conditions under which effective consumer channel preference and channel integration strategies can reduce the omni-channel bullwhip effect. Finally, some suggestions for omni-channel retailers on market selection and channel integration strategies are presented to help them control the bullwhip effect at a lower level.