Measuring and Implementing the Bullwhip Effect Under a Generalized Demand Process

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Modeling and Measuring the Bullwhip Effect

The bullwhip effect is a phenomenon commonly observed in industry. It describes how the distortion of demand information in a supply chain amplifies demand variance as it moves from consumption point up the supply chain to layers of suppliers. The bullwhip effect has been a subject of intensive research activities. Researchers have tried to address questions such as: What causes the bullwhip ef...

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On the Bullwhip Effect Measure in Supply Chains with VAR (1) Demand Process

In this paper, a two-echelon supply chain, which includes two products based on the following considerations, has been studied and the bullwhip effect is quantified. Providing a measure for bullwhip effect that enables us to analyze and reduce this phenomenon in supply chains with two products is the basic purpose of this paper. Demand of products is presented by the first order vector autoregr...

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Delayed demand information and dampened bullwhip effect

This paper considers an inventory setting in which the historical data used for demand forecasting is delayed. When the replenishment is controlled via an order-up-to policy, we show that such delays reduce the variability of the order history and dampen the bullwhip effect. We discuss the intuition behind this result. (Key Terms: Information delay; Forecasting; Supply Chain Management; Bullwhi...

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The Impact of Forecasting Methods Combination for Reducing Bullwhip Effect in a Four-level Supply Chain under Variable Demand

Bullwhip effect in a supply chain, makes inefficiencies such as excess inventory and overdue orders during the chain. These problems can be reduced by appropriate predictions. Forecasting must be done in all levels of a supply chain. This research addresses the problem of optimal combination of forecasting to reduce the bullwhip effect in a four-level supply chain when demand is variable. For t...

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Measuring and avoiding the bullwhip effect: A control theoretic approach

An important contributory factor to the bullwhip effect (i.e. the variance amplification of order quantities observed in supply chains) is the replenishment rule used by supply chain members. First the bullwhip effect induced by the use of different forecasting methods in order-up-to replenishment policies is analysed. Variance amplification is quantified and we prove that the bullwhip effect i...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2010

ISSN: 1556-5068

DOI: 10.2139/ssrn.1682862