scholarly journals Bullwhip Effect Study in a Constrained Supply Chain

2014 ◽  
Vol 69 ◽  
pp. 63-71 ◽  
Author(s):  
Borut Buchmeister ◽  
Darko Friscic ◽  
Iztok Palcic
Author(s):  
Dwi Apriyani ◽  
Rita Nurmalina ◽  
Burhanuddin Burhanuddin

The mismatch between the availability of vegetables and consumer demand is one of the causes of inefficient supply chains. This study aims to analyze the bullwhip effect on the organic leaf vegetable supply chain at PT Simply Fresh Organic (SFO). The analysis method used is a comparison between the coefficient of variation of orders created with the coefficient of variation in requests received by each supply chain institution. The data used are secondary data obtained from PT SFO. The measurement results show that the supply chain flow of organic leaf vegetables had a bullwhip effect at the PT SFO level and no bullwhip effect occurs at the retail level. The value of the BE supply chain value calculation at PT SFO shows a higher figure than at the retail level. The bullwhip effect at PT SFO occurred because of a rationing and shortage gaming policy. Therefore, each member of the supply chain must maintain transparency of data information and utilize digital technology to improve the accuracy of data forecasting requests and reservations quickly.


2015 ◽  
Vol 9 (5) ◽  
pp. 438
Author(s):  
Milad Yousefi ◽  
Moslem Yousefi ◽  
Ricardo Poley Martins Ferreira

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.


2008 ◽  
Vol 34 (3) ◽  
pp. 1680-1691 ◽  
Author(s):  
M.H. Fazel Zarandi ◽  
M. Pourakbar ◽  
I.B. Turksen

2010 ◽  
Vol 44-47 ◽  
pp. 688-692
Author(s):  
Xiao Yan Wang ◽  
Jian Sun

Bullwhip effect means the magnification of demand fluctuations, which is evident in a supply chain when demand increases and decreases, while the concept of Demand Chain Management means to make the planning on the basis of the demand side information so as to solve the problem of inconsistent upstream and downstream information by means of partner collaboration in the supply chain. Demand chain emphasizes the customer demand as its core value so as to achieve the best balance between the supply chain efficiency and customer satisfaction. Compared with the supply chain, the demand chain advises the enterprise to strengthen the information transmission ability to promote the performance. Under the demand chain management, the extent of bullwhip effect are weakened, and the fluctuation range against demand chain management is lower than against traditional supply chain.


2020 ◽  
Author(s):  
Zhan Qu ◽  
Horst Raff

This paper shows that decentralized supply chains, in which upstream firms use linear wholesale prices, may experience lower upstream production and downstream sales volatility than vertically integrated supply chains and may be less susceptible to the bullwhip effect by which the variance of upstream production exceeds the variance of downstream sales. The reason is that decentralized supply chains exhibit a price effect, whereby upstream producers raise wholesale prices in the case of positive demand shocks and lower wholesale prices in the case of negative demand shocks. Whereas upstream producers benefit from the price effect and, thus, from a dampening of the bullwhip effect, downstream firms may lose, and overall supply chain profit may decrease. This paper was accepted by Vishal Gaur, operations management.


2014 ◽  
Vol 945-949 ◽  
pp. 3187-3190
Author(s):  
Hai Dong ◽  
Jin Hua Liu ◽  
Liang Yu Liu

The bullwhip effect was caused by fuzzy demand among the enterprises. In order to reduce this effect, control theory was applied to solve the inventory in supply chain. Firstly, inventory control in supply chain and the bullwhip effect was researched. Secondly, a kind of proportional integral differential (PID) controller was developed for inventory control in a three-level supply chain, and the mathematical model of the PID controller for inventory control was presented. Finally, the results show that the PID controller can evidently alleviate the bullwhip effect and inventory fluctuations under the suitable combination of control gain.


Sign in / Sign up

Export Citation Format

Share Document