IMPACT OF INFORMATION DISTORTION UNDER SERVICE SUPPLY CHAIN MANAGEMENT

Although there are a number of academic studies about supply chain management, the subject of service supply chain has still waited to receive much more attention to be searched and explained as supply chain. It is generally believed that supply chain management is one of the most vital issues in manufacturing industry. Nowadays, with the development of service industry, some of research papers have showed us that the supply chain theory can be considered and applied in service industry. Although there are several evidences on the impact of information distortion – bullwhip effect – on supply chain management, there are limited studies about bullwhip effect on service supply chains. According to these scarce studies, capacity planning is one of the main causes of the bullwhip effect. Purpose of this study is to analyze the bullwhip effect for a four-stage service supply chain by simulating Mortgage Service Game with Microsoft Excel.