Measuring the impact of (s, S) ordering policy on the bullwhip effect by means of simulation optimization

2013 ◽  
Author(s):  
Mouna Derbel ◽  
Habib Chabchoub ◽  
Wafik Hachicha ◽  
Faouzi Masmoudi
Keyword(s):  
Simulation Optimization ◽  
Bullwhip Effect ◽  
Ordering Policy ◽  
The Impact

scholarly journals Analysis of Variance Amplification and Service Level in a Supply Chain with Correlated Demand

2020 ◽  
Vol 12 (16) ◽  
pp. 6470 ◽  
Author(s):  
Ahmed Shaban ◽  
Mohamed A. Shalaby ◽  
Giulio Di Gravio ◽  
Riccardo Patriarca
Keyword(s):  
Supply Chain ◽  
Performance Measures ◽  
Bullwhip Effect ◽  
Service Level ◽  
Operating Conditions ◽  
Supply Chain Performance ◽  
Chain Model ◽  
Ordering Policy ◽  
Smoothing Parameters ◽  
The Impact

The bullwhip effect reflects the variance amplification of demand as they are moving upstream in a supply chain, and leading to the distortion of demand information that hinders supply chain performance sustainability. Extensive research has been undertaken to model, measure, and analyze the bullwhip effect while assuming stationary independent and identically distributed (i.i.d) demand, employing the classical order-up-to (OUT) policy and allowing return orders. On the contrary, correlated demand where a period’s demand is related to previous periods’ demands is evident in several real-life situations, such as demand patterns that exhibit trends or seasonality. This paper assumes correlated demand and aims to investigate the order variance ratio (OVR), net stock amplification ratio (NSA), and average fill rate/service level (AFR). Moreover, the impact of correlated demand on the supply chain performance under various operational parameters, such as lead-time, forecasting parameter, and ordering policy parameters, is analyzed. A simulation modeling approach is adopted to analyze the response of a single-echelon supply chain model that restricts return orders and faces a first order autoregressive demand process AR(1). A generalized order-up-to policy that allows order smoothing through the proper tuning of its smoothing parameters is applied. The characterization results confirm that the correlated demand affects the three performance measures and interacts with the operating conditions. The results also indicate that the generalized OUT inventory policy should be adopted with the correlated demand, as its smoothing parameters can be adapted to utilize the demand characteristics such that OVR and NSA can be reduced without affecting the service level (AFR), implying sustainable supply chain operations. Furthermore, the results of a factorial design have confirmed that the ordering policy parameters and their interactions have the largest impact on the three performance measures. Based on the above characterization, the paper provides management with means to sustain good performance of a supply chain whenever a correlated demand pattern is realized through selecting the control parameters that decrease the bullwhip effect.

scholarly journals Cash Flow Bullwhip—Literature Review and Research Perspectives

Logistics ◽  
2021 ◽  
Vol 5 (1) ◽  
pp. 8
Author(s):  
Hicham Lamzaouek ◽  
Hicham Drissi ◽  
Naima El Haoud
Keyword(s):  
Literature Review ◽  
Customer Service ◽  
Cash Flow ◽  
State Of The Art ◽  
Research Work ◽  
Bullwhip Effect ◽  
Research Perspectives ◽  
Financial Perspective ◽  
The Impact ◽  
Exhaustive List

The bullwhip effect is a pervasive phenomenon in all supply chains causing excessive inventory, delivery delays, deterioration of customer service, and high costs. Some researchers have studied this phenomenon from a financial perspective by shedding light on the phenomenon of cash flow bullwhip (CFB). The objective of this article is to provide the state of the art in relation to research work on CFB. Our ambition is not to make an exhaustive list, but to synthesize the main contributions, to enable us to identify other interesting research perspectives. In this regard, certain lines of research remain insufficiently explored, such as the role that supply chain digitization could play in controlling CFB, the impact of CFB on the profitability of companies, or the impacts of the omnichannel commerce on CFB.

The impact of replenishment parameters and information sharing on the bullwhip effect: A computational study

2008 ◽  
Vol 35 (11) ◽  
pp. 3657-3670 ◽  
Author(s):  
Thomas Kelepouris ◽  
Panayiotis Miliotis ◽  
Katerina Pramatari
Keyword(s):  
Information Sharing ◽  
Computational Study ◽  
Bullwhip Effect ◽  
The Impact

scholarly journals Robust capacity planning for accident and emergency services

2020 ◽  
Vol 54 (6) ◽  
pp. 1757-1773
Author(s):  
Elvan Gökalp
Keyword(s):  
Capacity Planning ◽  
Emergency Services ◽  
Simulation Optimization ◽  
Patient Flow ◽  
Waiting Times ◽  
Model Parameters ◽  
Planning Problem ◽  
Accident And Emergency ◽  
Number Of Patients ◽  
The Impact

Accident and emergency departments (A&E) are the first place of contact for urgent and complex patients. These departments are subject to uncertainties due to the unplanned patient arrivals. After arrival to an A&E, patients are categorized by a triage nurse based on the urgency. The performance of an A&E is measured based on the number of patients waiting for more than a certain time to be treated. Due to the uncertainties affecting the patient flow, finding the optimum staff capacities while ensuring the performance targets is a complex problem. This paper proposes a robust-optimization based approximation for the patient waiting times in an A&E. We also develop a simulation optimization heuristic to solve this capacity planning problem. The performance of the approximation approach is then compared with that of the simulation optimization heuristic. Finally, the impact of model parameters on the performances of two approaches is investigated. The experiments show that the proposed approximation results in good enough solutions.

Investigating the impact of inventory inaccuracy on the bullwhip effect in RFID-enabled supply chains using colored petri nets

2019 ◽  
Vol 14 (2) ◽  
pp. 360-384 ◽  
Author(s):  
Maria Drakaki ◽  
Panagiotis Tzionas
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Petri Nets ◽  
Information Sharing ◽  
Bullwhip Effect ◽  
Colored Petri Nets ◽  
Content Type ◽  
Multi Stage ◽  
The Impact ◽  
Serial Supply Chains

PurposeInformation distortion results in demand variance amplification in upstream supply chain members, known as the bullwhip effect, and inventory inaccuracy in the inventory records. As inventory inaccuracy contributes to the bullwhip effect, the purpose of this paper is to investigate the impact of inventory inaccuracy on the bullwhip effect in radio-frequency identification (RFID)-enabled supply chains and, in this context, to evaluate supply chain performance because of the RFID technology.Design/methodology/approachA simulation modeling method based on hierarchical timed colored petri nets is presented to model inventory management in multi-stage serial supply chains subject to inventory inaccuracy for various traditional and information sharing configurations in the presence and absence of RFID. Validation of the method is done by comparing results obtained for the bullwhip effect with published literature results.FindingsThe bullwhip effect is increased in RFID-enabled multi-stage serial supply chains subject to inventory inaccuracy. The information sharing supply chain is more sensitive to the impact of inventory inaccuracy.Research limitations/implicationsInformation sharing involves collaboration in market demand and inventory inaccuracy, whereas RFID is implemented by all echelons. To obtain the full benefits of RFID adoption and collaboration, different collaboration strategies should be investigated.Originality/valueColored petri nets simulation modeling of the inventory management process is a novel approach to study supply chain dynamics. In the context of inventory errors, information on RFID impact on the dynamic behavior of multi-stage serial supply chains is provided.

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