Track: Supply Chain Management

Abstract

Today, pollution and sustainability are two important aspects of the global agenda; however, economic growth is also important but as a challenge factor that helps to minimize climate change and maximize society's progress. This article analyses the behavior of the Bullwhip Effect specifically in Mexico's transport and logistics sector during the period 2004 – 2017 as well as in the Northern States of Mexico and several OECD countries, taking into account the economic contractions that have happened as well as the existence of the sustainable phenomenon, applying a proposed model based on the Cobb-Douglas function and using the Time Series and Data Panel techniques using the stolastic border model (SFA). The objective of this article is to detect the sustainable inventory limits of Mexico's Transport and Logistics Sectors when the Bullwhip Effect arises, representing the above in useful applications for temporary measures obtaining economic and sustainable benefits.  The results shows that the maximum sustainable Bullwhip Effect limit for the logistics & transport sector in the northern states of Mexico is 23.1%  and in several OECD countries is 40.0%.