Abstract for: Towards sustainable net-zero buyer-supplier relationship: An approach to quantify green bullwhip effect

The paper presents a comprehensive study on sustainable supply chain management, focusing on the “green bullwhip effect” and its implications for net-zero buyer-supplier relationships. It attempts a novel approach to quantify the impact of environmental regulations on supply chain dynamics, particularly through the lens of Production and Inventory Control Systems (PICS) under Perceived Emission Rate (PER) feedback. Classical bullwhip effect, where small disturbances in demand can amplify through the supply chain, leading to inefficiencies and increased costs. A ripple effect from the change in environmental effect termed green bullwhip is observed. This study explores the green bullwhip effect by integrating environmental requirements into a buyer-supplier relationship through PICS under PER feedback. The paper also delves into the concept of Vendor-Managed Inventory (VMI) and its potential to improve supply chain performance by enhancing coordination among echelons. It suggests that a Vendor-Managed Production and Inventory Control System (VM-PICS) under emission feedback could be a viable solution for managing the green bullwhip effect. Emphasized on the importance of collaborative approaches in achieving sustainable supply chain management and the role of VM-PICS in facilitating environmentally responsible practices. In conclusion, the paper calls for further research to develop simulation-based models that can quantify the green bullwhip effect and offer strategies for its mitigation.