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REVERSED BULLWHIP EFFECT ON THE SUPPLY CHAIN PERFORMANCE OF OIL MARKETERS IN KENYA: A CASE OF NAIROBI CITY COUNTY

 

Jane Nyambura Muriithi

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

Dr. George Ochiri

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya.

 

CITATION: Muriithi, J., N. & Ochiri, G. (2017). Reversed Bullwhip Effect On The Supply Chain Performance Of Oil Marketers In Kenya: A Case Of Nairobi City County. International Journal of Human Resources and Procurement.. Vol. 6 (5) pp 398 -417.

ABSTRACT

Reverse bullwhip effect is multifaceted and can occur between the producers and wholesalers, wholesalers and retailers and between retailers and end user customers. With regards to the supply chain elements, influence is reciprocal and behavior is erratic during periods of supply disruption which compound the problem into a chaotic chain. Today the reversed bullwhip effect seems to be the major problem facing firms. 47% of industries studied in the US exhibited bullwhip effect while the remaining 53% the reverse bullwhip effect. The purpose of the study was to investigate the effect of reversed bullwhip effect on the supply chain performance of oil marketers in Kenya. The target population in this study was 100 oil marketers in Nairobi City County. Therefore all the 100 oil marketers in Nairobi City County formed the unit of analysis. The unit of observation was 100 supply chain managers from the oil marketing companies. Descriptive statistics such as, mean and frequencies and inferential statistics (regression and correlation analysis) were used to perform data analysis. A multiple linear regression analysis model was used to test the hypotheses and link the variables. The study findings showed that storage capacity, internal processes, information flow and equipment availability had a positive and significant effect on supply chain performance. The study recommended that since storage capacity, equipment availability and internal processes positively affect their supply chain performance, they should invest more to improve the storage capacities so as to have space for buffer stocks, they should also invest more in acquiring more equipment such as tankers so as to manage the distribution lead times and also invest more in improving their internal processes including allocating more funds for outsourcing services so as to manage huge demands.

Key words: Storage capacity, Equipment availability, Internal processes, Information flow, Supply Chain Performance

 

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