Mitigating The Bullwhip Effect By Reducing Demand Variance In The Supply Chain

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Multiple Order-up-to Policy for Mitigating Bullwhip Effect in

Li (2012) advocated that limited information sharing increases the difficulty of reducing the bullwhip effect and leads to inefficient supply chain management. His research work explored new ways to reduce the bullwhip effect in supply chain systems that face uncertainties with respect to information sharing. Yungao et al. (2012) presented a

Do Electronic Linkages Reduce the Bullwhip Effect? An

the inventory demand variance ratio (a proxy for the bullwhip effect). Consistent with studies in the literature, an elec-tronic linkage refers to an interfirm linkage enabled by an electronic medium (Bakos 1991), including both 1 The bullwhip effect is a supply chain phenomenon because it involves both buyers and suppliers in a supply chain.

Eindhoven University of Technology MASTER A behavioral model

behavioral aspects in reducing bullwhip and in supply chain planning in general. We contribute a formal model integrated into a robust solution procedure and provide a proof of concept by means of simulation. In addition, we contribute to the gap on workflow design for SCM business processes.

How Correct and Defect Decision Support Systems Influence

upstream the supply chain is amplified at each tier and yields in stock level graphs that look like a bullwhip. Although identified and formalized over 50 years ago, this effect is still frequently discussed [ 4, 9, 10]. Methods for mitigating supply chain disruptions are manifold, but most focus on organizational aspects of the production

International Journal of Managing Value and Supply Chains

Whereas the bullwhip effect is a phenomenon strictly related to supply chain management and regards the magnification and variance in order volumes observed at upstream nodes in a supply chain, the

European Journal of Operational Research

key technical challenges of mitigating the Bullwhip effect can be observed as follows. 1.1. Technical challenges 1.1.1. Quality of demand information The Bullwhip effect can be mitigated by reducing the inventory variance (Dejonckheere et al., 2002, 2003) which is achieved through a non-smoothed demand pattern (Dejonckheere et al.,

Mitigation of Bullwhip Effect in Supply Chain Inventory

market demands, causing an overstock and reducing the operational efficiency for the whole supply chain. The best way to solve Bullwhip Effect is to reduce knots of supply chain as far as possible

Behavioral Causes of the Bullwhip Effect and the Observed

the bullwhip effect and under-weighting still occur when all operational causes are removed (i.e., when the demand distribution is stable and known to chain members). Subsequent researchers have used the Beer Distribution Game to test various strategies for reducing the bullwhip effect (e.g., Kaminsky and Simchi-Levi 1998, Gupta et al. 1998).

Explore bull riding with beer‖

bullwhip effect is considered as the target objective function where the demand variance equals the order variance (= no bullwhip effect occurs). For optimization and bullwhip reducing purposes one and/or two smoothing parameters, and a factor for calculating the safety stock are used. These are considered as decision input parameters. SC

A Computational Framework for Studying Decentralized Supply

demand. In other words, the manufacturer would face demand variability identical to the retailer s. However, under certain conditions, the manufacturer s demand variability can be much larger than the retailer s. This phenomenon is called the bullwhip effect and was first observed in Procter and Gamble s diapers business.

Energy Economics Crude Oil Pipeline Capacity and Economic

well-suited to respond to changes in aggregate demand, thus mitigating the business cycle. Pipeline infrastructure also relieves pressure on other forms of transportation, such as rail and truck (highway use, etc.), and enhances the supply chain by reducing what is often referred to as the bullwhip effect

Conference Book

and inventory variance amplification in a closed-loop supply chain. We adopt a difference equation math approach for analysing a closed-loop supply chain. Results show how the return flow positively affects both the inventory variance and the bullwhip effect independently of the number of echelons. On the contrary, an increasing

The bullwhip effect: causes, intensity, and mitigation

makes much variance in demand through the SC upward stages of a company especially at the time of festivals. This variance of demand compels the manufacturers for the extra production & supply up to the retailers. Most of the times these supplies are counted as the redundant/unnecessary supply that occurs as a manufacturer s compensation.


VMI can reduce the Bullwhip Effect, an S&RL system could provide similar benefits in the field of military logistics. Finally, although information sharing reduces the Bullwhip Effect and improves supply chain performance, military communications networks are limited. So, we must also look at ways to reduce reporting volume.

A Supplier Strategy to Control the Bullwhip Effect

Keywords Supply chain management, Mitigating the bullwhip effect, Supplier strategies, variance reduction, service level. 1. Introduction provided where The bullwhip effect is widely known as the amplification of the variability in retailers orders that the supplier must fulfill when compared with the

How to manage the bullwhip effect in the supply chain

industry in the Chinese market. In the supply chain management, the bullwhip effect is a phenomenon can never be ignored. The bullwhip effect has being defined as information distortion when orders move form downstream enterprises to the supplier (Lee et al 1997b).

Industrial Engineering & Management Shaban et al. Ind Eng

The Bullwhip Effect The variability of replenishment orders tends to increase as one moves up the supply chain, causing the bullwhip effect (Figure 1). The presence of the bullwhip effect in supply chains leads to severe consequences such as stock outs, low service level, and extra transportation and capacity costs. Lee et al. [1] identified five

Commentary on Forecasting: Academia vs. Business

and mitigating the bullwhip effect. Fortunately, there is a good bit of research that focuses on such links. Here two very recent examples. Barrow and Kourentzes (2016) explored the impact of forecast combinations combining forecasts from different methods on safety stocks and found that combinations can lead to reductions

WCE 2019, July 3-5, 2019, London, U.K. Approach to Mitigating

Mitigating Bullwhip Effect by Deploying Agility in the Supply Chain System An-Yuan Chang, Cheng-Hsien Cho. Abstract The bullwhip effect (BE) occurs when the supply chain system faces numerous uncertainties in market factors or when it fails to obtain correct information, resulting in considerable variation in order

Quantifying and mitigating the bullwhip effect in a benchmark

Quantifying and mitigating the bullwhip effect in a benchmark supply chain system by an extended prediction self-adaptive control ordering policyq Dongfei Fua,⇑, Clara Ionescua,1, El-Houssaine Aghezzafb,3, Robin De Keysera,2 a Department of Electrical energy, Systems and Automation, Ghent University, Gent, Belgium

An investigation of rounding rules for Jula´s Supply Chain

to achieve efficiency. However, it is recognized as a source of the bullwhip effect within supply chains (Potter & Disney, 2006). One of the main causes of additional costs within supply chains is the bullwhip effect (Lee et al., 1997). Bullwhip effect occurs when the variance of orders placed happens along a supply chain.

Decentralized and centralized model predictive control to

Bullwhip effect abstract Mitigating the bullwhip effect is one of crucial problems in supply chain management. In this research, centralized and decentralized model predictive control strategies are applied to control inventory posi-tions and to reduce the bullwhip effect in a benchmark four-echelon supply chain. The supply chain

The Influence of Retailer Enterprise Marketing Information

The bullwhip effect (Forrester 1961; Lee et al., 1997) has been studied extensively because of its ability to explain the situation of inventory in supply chain. Bullwhip Effect involves risk to manufacturers since it is concerned with the amplification in order-size variance for upstream node in a supply chain (Lee et al., 1997).


bullwhip effect in a Beer Distribution Game and concluded that this phenomenon occurs due to irrational behaviour of suppl y chain players. After that, Lee et al., (1997a, b) identified the causes of bullwhip effect in ups tream nodes in the supply chain pl ayers. Five causes of bullwhip


Best solution for mitigating potential or real bullwhip effect are information sharing while working on joint demand forecast in supply chain and use of newer forecasting method Conclusion: Expected results should contribute to better understanding of bullwhip phenomenon in natural gas supply

Journal of Cleaner Production

Green supply chain Recycling System dynamics Bullwhip effect abstract Technological advancement and rapid demand changes, lead to shorter life period and booming waste of electronic products. Recycling and reusing activities of electronic products has attracted much attention on the optimization of green supply chain (SC).

ch15 - Cleveland State University

Mitigating the Bullwhip Effect Good supply chain management can overcome the bullwhip effect Strategic buffering Holding inventory at a distribution center rather than at retail outlets Replenishment based on need Vendor-managed inventory Vendors monitor goods and replenish retail inventories when supplies are low 15-41