The Bullwhip Effect and its Suppression in Supply Chain Management

Author(s):  
Katsuhiko Takahashi ◽  
Myreshka

2019 ◽  
Vol 12 (3) ◽  
pp. 171-179 ◽  
Author(s):  
Sachin Gupta ◽  
Anurag Saxena

Background: The increased variability in production or procurement with respect to less increase of variability in demand or sales is considered as bullwhip effect. Bullwhip effect is considered as an encumbrance in optimization of supply chain as it causes inadequacy in the supply chain. Various operations and supply chain management consultants, managers and researchers are doing a rigorous study to find the causes behind the dynamic nature of the supply chain management and have listed shorter product life cycle, change in technology, change in consumer preference and era of globalization, to name a few. Most of the literature that explored bullwhip effect is found to be based on simulations and mathematical models. Exploring bullwhip effect using machine learning is the novel approach of the present study. Methods: Present study explores the operational and financial variables affecting the bullwhip effect on the basis of secondary data. Data mining and machine learning techniques are used to explore the variables affecting bullwhip effect in Indian sectors. Rapid Miner tool has been used for data mining and 10-fold cross validation has been performed. Weka Alternating Decision Tree (w-ADT) has been built for decision makers to mitigate bullwhip effect after the classification. Results: Out of the 19 selected variables affecting bullwhip effect 7 variables have been selected which have highest accuracy level with minimum deviation. Conclusion: Classification technique using machine learning provides an effective tool and techniques to explore bullwhip effect in supply chain management.





2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Fuan Zhang ◽  
Zhenzhi Gong

With the development of economic globalization, the competition among enterprises is increasingly fierce. Therefore, companies need close information sharing to realize the integration of supply chain. This article aims to study the collaborative management and information sharing mechanism of supply chain inventory based on cloud computing and 5G Internet of Things. This article first introduces the theory and methods of collaborative supply chain management and the information exchange mechanism and then discusses the problem of information sharing in the supply chain, that is, the bullwhip phenomenon, and then from the demand forecast, supply chain structure, time lag, and shortage game, six aspects are analyzed. The cause of the bullwhip phenomenon is analyzed. Secondly, this article proposes a quantitative analysis of the bullwhip effect, establishes a mathematical model of the bullwhip effect in the supply chain, and uses quantitative analysis to analyze the value of information sharing in the supply chain. Finally, this article uses cloud computing technology to build a supply chain information collaboration system architecture and uses EPC Internet of Things to build a supply chain information sharing model and describes the entire operation process of the supply chain. The experimental results of this paper show that the application of cloud computing technology to supply chain management establishes a system platform for supply chain information sharing, improves the overall operational efficiency of supply chain management, and realizes supply chain information sharing and business collaboration. In addition, the operating costs and risks of each node enterprise in the supply chain are reduced by 12% compared with the nonsharing situation, which also shows that the overall benefits of the supply chain have been correspondingly improved and market competitiveness has been enhanced.



2019 ◽  
Vol 12 (2) ◽  
pp. 101-117
Author(s):  
Anugrah Putra Jaya ◽  
Syamsul Bachri

The purpose of this study is to measure the bullwhip effect in supply chain MAS 240 ml in PT. Sembilan Pilar Utama and Swalayan Koya. This research measure method is using bullwhip effect method that presented by Fransoo and Wouters (2000). The results of research, we know that the bullwhip effect happened because of the coefficient of variation orders higher than the coefficient of variation in product demand, inaccurate demand prediction, and order batching. The solution that may be effective to reduce the bullwhip effect that occurs is more concerned with the pattern of order and the product demand.Keywords: supply chain management, bullwhip effect.





Author(s):  
Michael Quayle

If your international supply chain management is the weakest link in your organisation, your board or chief executive will say good-bye — without a winking eye. How do you know your supply chain in the age of globalisation and internationalisation is effective? Literature in its many forms contains a lack of clarity and completeness in the how to’s of implementation. This chapter covers the nuts and bolts of what’s required and what can go wrong. I’ve been there, seen it, done it and didn’t get fired. Reality, therefore, pervades this chapter. Within this chapter, I will explore definitions and concepts of logistics and supply chain management, including the value chain, logistics management, global sourcing, and the bullwhip effect. Illustrations will be taken from the private and public sector along with a suggested interlock strategy.



2012 ◽  
Vol 2 (5) ◽  
pp. 129
Author(s):  
Amir Maniyan ◽  
Reza Abachian Ghassemi ◽  
Elnaz Rahrovy

During the last decade, most organizations have implemented enterprise-wide applications and integration platforms. These implementations have delivered benefits in terms of data synchronization and information flows within the organization, and with trading partners providing valuable inputs for planning and optimization of schedules and reporting. The best and the most important technology of these technologies is RFID or Radio Frequency Identification systems. RFID is one of the most promising and the most advanced technologies released in recent years. Perishable and short life products, especially foodstuffs, are those cases causing the largest problems and challenges for supply chain management. These challenges are mainly due to the variety in the number of products, special needs for tracing and tracking the product flow during the supply chain, the short life of the products, the requirement for controlling the temperature in the supply chain and the high volume of the products we deal with.  Using the RFID system is one of the best potential solutions helping the supply chain management solve logistic problems of spoilable products. In food industries, the period of the product storage is short due to the high probability that the product spoils and the short time of the storage of the final product. Today, the changes in the ways of producing, distributing, maintaining and selling foodstuffs have caused changes in consumers' demands to increase the quality and the durability of foodstuff packages. Innovations are created in this industry to make sure of the desirable performance of packing in the supply chain of the foodstuffs, such as active or intelligent packing methods. Keywords: SCM, RFID, automatic identification of the product, information, information technology, information systems, bullwhip effect, efficiency 



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