Does Structure Influence Performance
in Downstream Supply Chain?

Authors: Liviu ILIEŞ and Horaţiu CÎRTIŢĂ
Published in: Vol:8 No.4 / 2007

      In 1989, John Sterman has explained in the famous beer game the bullwhip effect in downstream supply chain and how structure influences behavior of supply chain members. In this article, we try to find answers to the following questions: Does structure influence performance in downstream supply chain? Can be identified a network configuration that performs better than other configurations?
      In finding answers to these questions, we considered the axiom ‘what it is not measured, it cannot be managed’. In the study, we took SCOR metrics at first level as performance metrics and best practices to express each SCOR dimension. 30 top executives from World Class Manufacturers were surveyed to rate the importance of the metrics and best practices in measuring performance in downstream supply chain. The second step was to develop a multiple attribute utility model (MAUT) to select from the eight configurations identified the one that has the highest performance.