Modeling and Measuring the Bullwhip Effect
نویسنده
چکیده
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 effect? How would different types of demand signal processing in forecasting and replenishment decisions affect the bullwhip effect? Can we explain the magnitude of the bullwhip effect in terms of the characteristics of the product and the supply chain? What is the magnitude of the bullwhip effect in practice, how does it differ across industries and products, and how prevalent is the phenomenon? In this chapter, we review both theoretical and empirical research done to address these questions, as well as research done to identify important approaches and specifications that are necessary to correctly measure and evaluate the true extent of the bullwhip effect.
منابع مشابه
Measuring and Analyzing the Bullwhip Effect in a Two-Product and Two Echelon Supply Chain Using Control Theory Approach
Coordination is very important in supply chain management and it is one of the main factors in supply chain profitability. Bullwhip effect is one of the basic obstacles to achieve coordination in supply chains and reduction of this phenomenon has an important role in supply chain harmony. The other side, costs of supply chain can be mitigated and customer service level can be increased by reduc...
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Two different bullwhip effects with equal scores may have different sensitivities and production patterns. As a result, the difference between these two seemingly equal scores has been ignored in previous methods (such as frequency response and moving average). So, the present study constructs a model of Inverse Network Data Envelopment Analysis, to introduce the relative and interval scores of...
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This paper explains a model for analyzing and measuring the propagation of order amplifications (i.e. bullwhip effect) for a single-product supply network topology considering exogenous uncertainty and linear and time-invariant inventory management policies for network entities. The stream of orders placed by each entity of the network is characterized assuming customer demand is ergodic. In fa...
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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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