Bullwhip effect and inventory oscillations analysis using the beer game model

2009 ◽  
Vol 48 (13) ◽  
pp. 3943-3956 ◽  
Author(s):  
Matteo Coppini ◽  
Chiara Rossignoli ◽  
Tommaso Rossi ◽  
Fernanda Strozzi
Keyword(s):  
2017 ◽  
Vol 22 (4) ◽  
pp. 297-304 ◽  
Author(s):  
Ming Jin ◽  
Nicole DeHoratius ◽  
Glen Schmidt

Purpose The popular “beer game” illustrates the bullwhip effect where a small perturbation in downstream demand can create wild swings in upstream product flows. The purpose of this paper is to present a methodical framework to measure the bullwhip effect and evaluate its impact. Design/methodology/approach This paper illustrates a framework using SKU-level data from an industry-leading manufacturer, its distributors, end-users and suppliers. Findings Firms benefit from tracking multiple intra-firm bullwhips and from tracking bullwhips pertinent to specific products, specific suppliers and specific customers. The framework presented in this paper enables managers to pinpoint bullwhip sources and mitigate bullwhip effects. Research limitations/implications This paper presents a framework for methodically measuring and tracking intra-firm and inter-firm bullwhips. Practical implications A disconnect exists between what is known and taught regarding the bullwhip effect and how it is actually tracked and managed in practice. This paper aims to reduce this gap. For the various products analyzed herein, the authors show how using this framework has the potential to reduce delivered product cost by 2 to 15 per cent. Social implications Properly managing the bullwhip leads to lower inventories and potentially lower product prices while simultaneously increasing firm profits. Originality/value This paper presents a novel approach to systematically tracking intra-firm bullwhips along with bullwhips specific to a given supplier or customer.


SIMULATION ◽  
2020 ◽  
Vol 96 (9) ◽  
pp. 737-752
Author(s):  
Abdullah A Alabdulkarim

In this research, the aim is to find the most appropriate inventory management logic and set of rules along with the optimal decision values that will minimize the bullwhip effect in a supply chain, taking the beer game supply chain as a reference model. In order to achieve this, a simulation model of the beer game supply chain is developed along with an ordering strategy based on the Economic Order Quantity with additional rules, such as no backorder policy, vendor-managed inventory, and taking into consideration route deliveries, all of which are implemented in the ordering algorithm. In the literature, there is extensive research conducted on the causes of the bullwhip effect and in the presence of certain inventory management policies. However, these terms are rarely combined with simulation modeling to provide satisfactory proven results. In this article, our proposed ordering algorithm avoids the bullwhip effect to a very large extent. The results show that approximately half the cost is incurred compared to recent studies with the same settings.


Author(s):  
Olha Maiboroda ◽  
Irina Patlakh ◽  
Oleg Maiboroda

This article is devoted to the development of international logistical activities, examination and prevention negative factors on any links of logistic chain. The important requirements to obtain maximum efficiency at all components of the logistic chain with minimal costs in each of its items, compliance with market interests and goals of each participant of logistic chain are considered. The simulated model has proved that the farther on logistic chain the information flow passes from consumer the more distorted information about the necessary stocks of products and real stocks in warehouse, and as a result – the extraordinary accumulation of mistakes in the forms of surplus of goods at all stages of its movement from producer to consumer. The similar phenomenon in logistics is called the effect of "The Bullwhip Effect". The method of practical analysis of the "bullwhip" effect was used in order to investigate resistance to this effect on the situation were simulated in «BEER GAME». The simulation method “BEER GAME” is the result of the work of the consulting system MA system, which works in the field of business logistics around the world. Four parts of the logistics chain took part in the simulation: a retailer, a distributor, a wholesaler and a manufacturer. They make a logistics chain 52 weeks long. The overall results of the game are presented in detail: the total cost of the simulated game, and manufacturer's game statistics, the statistics of game such as costs, orders and information of warehouse stock in terms of retailer, distributor and wholesaler. Furthermore, the article highlights other destabilizing effects that are closely related to the "bullwhip" effect, such as: the Forrester effect - a phenomenon in the sales channel, which predicts the inefficiency of the logistics chain; the Burbage effect - when the size of supplies can change in the direction of increase without managerial decisions; the Halligan effect - when there is a deviation from the existing supply and production plan; promotion effect - implicit price changes. On the basis of the conducted modeling and consideration of the reasons of occurrence of effect methods of stabilization of a logistic chain are offered.


CICTP 2017 ◽  
2018 ◽  
Author(s):  
Hua-Wei Gong ◽  
Wen-Zhou Jin ◽  
Xiao-Dong Zang ◽  
Qiang Luo

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

2017 ◽  
Vol 8 (2) ◽  
pp. 245-251
Author(s):  
Krasimir Nikolov ◽  
◽  
Jovka Zheleva ◽  
Simona Peneva ◽  
◽  
...  

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