The effect of vendor managed inventory (VMI) dynamics on the Bullwhip Effect in supply chains

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The Effect of Vendor Managed Inventory (VMI) Dynamics on the Bullwhip Effect in Supply Chains

The paper compares the expected performance of a Vendor Managed Inventory (VMI) supply chain with a traditional “serially-linked” supply chain. The emphasis of this investigation is the impact these two alternative structures have on the “Bullwhip Effect” generated in the supply chain. We pay particular attention to the manufacturer’s production ordering activities via a simulation model based ...

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Despite the importance of transport within the supply chain, it has traditionally been treated as a separate function within businesses. More recently there has been increased recognition that transport needs to be integrated into the supply chain. This chapter considers vendor managed inventory, and demonstrates how it can be used to improve both transport and supply chain performance. With VM...

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Effects of Vendor-Managed Inventory on the Bullwhip Effect

The bullwhip effect means that demand variability increases as one moves up the supply chain. In the following article the bullwhip effect is quantified for each part of the supply chain which is presupposed to consist of a producer, a wholesaler, a retailer, and a consumer. After considering the causes of the bullwhip effect, it will be shown with the help of a nonlinear optimization model to ...

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ژورنال

عنوان ژورنال: International Journal of Production Economics

سال: 2003

ISSN: 0925-5273

DOI: 10.1016/s0925-5273(03)00110-5