Testing the Potential of RFID to Increase Supply-Chain Agility and to Mitigate the Bullwhip Effect

2012 ◽  
pp. 49-68
Author(s):  
Anthony Vance ◽  
Paul Benjamin Lowry ◽  
Jeffrey A. Ogden
Keyword(s):  
Supply Chain ◽  
Empirical Evidence ◽  
Bullwhip Effect ◽  
Inventory Level ◽  
Rfid Technology ◽  
Holding Costs ◽  
Business Agility ◽  
Supply Chain Agility ◽  
Inventory Holding ◽  
Stockout Costs

This study examines the potential of RFID technology to increase the agility of supply-chain e-commerce systems by mitigating the bullwhip effect. The bullwhip effect is a supply-chain phenomenon that reveals a lack of business agility characterized by the amplification of inventory variance. This study employs an experiment involving a modified Beer Distribution Game to simulate an RFID-enabled supply chain. The results provide empirical evidence that RFID technology can increase a supply chain’s agility and reduce the bullwhip effect by reducing inventory holding costs, stockout costs, and inventory-level variances. The results are all the more important when applied to interorganizational e-commerce systems.

Testing the Potential of RFID to Increase Supply-Chain Agility and to Mitigate the Bullwhip Effect

2010 ◽  
Vol 1 (1) ◽  
pp. 48-66 ◽  
Author(s):  
Anthony Vance ◽  
Paul Benjamin Lowry ◽  
Jeffrey A. Ogden
Keyword(s):  
Supply Chain ◽  
Empirical Evidence ◽  
Bullwhip Effect ◽  
Inventory Level ◽  
Rfid Technology ◽  
Holding Costs ◽  
Business Agility ◽  
Supply Chain Agility ◽  
Inventory Holding

This study examines the potential of RFID technology to increase the agility of supply-chain e-commerce systems by mitigating the bullwhip effect. The bullwhip effect is a supply-chain phenomenon that reveals a lack of business agility characterized by the amplification of inventory variance. This study employs an experiment involving a modified Beer Distribution Game to simulate an RFID-enabled supply chain. The results provide empirical evidence that RFID technology can increase a supply chain’s agility and reduce the bullwhip effect by reducing inventory holding costs, stock out costs, and inventory-level variances. The results are all the more important when applied to interorganizational e-commerce systems.

A Coordinated Revenue-Sharing Contract for a Two-Stage Supply Chain with Linear Stepwise Inventory Holding Costs

2009 ◽  
Vol 2 (4) ◽  
pp. 1-23 ◽  
Author(s):  
Jing Hou ◽  
Amy Z. Zeng ◽  
Lindu Zhao
Keyword(s):  
Supply Chain ◽  
Revenue Sharing ◽  
Sequential Optimization ◽  
Inventory Level ◽  
Two Stage ◽  
Holding Costs ◽  
Revenue Sharing Contract ◽  
Holding Cost ◽  
Inventory Holding ◽  
Optimization Mechanism

In this paper, the authors focus on examining the coordination mechanisms for a two-stage supply chain comprising one supplier and one retailer. The authors consider such a channel relationship that the transaction quantity between the two members is sensitive to the supplier’s inventory level and that the supplier’s unit inventory holding cost has a linear stepwise structure. They devise a coordinated revenue-sharing contract with bargaining so that each party’s respective profit is better than that resulted from the simple sequential optimization mechanism. The key contract parameters, namely the supplier’s inventory level and the retailer’s revenue-sharing fraction, are obtained and analyzed. Numerical illustrations of the contracts are given and shed lights on how the supply chain should coordinate in order to gain better performance.

scholarly journals Postponement Application in the Fast Fashion Supply Chain: A Review

2017 ◽  
Vol 12 (7) ◽  
pp. 115 ◽  
Author(s):  
MdAfzalul Aftab ◽  
Qin Yuanjian ◽  
Nadia Kabir
Keyword(s):  
Supply Chain ◽  
Value Chain ◽  
Building Blocks ◽  
Inventory Level ◽  
Successful Implementation ◽  
Process Standardization ◽  
Fast Fashion ◽  
Supply Chain Strategy ◽  
Manufacturing Operations ◽  
Inventory Holding

The successful implementation of push-pull supply chain management strategy has an important role in improving the competitiveness of an organization. The objective of a push-pull strategy is to minimize the holding of inventory level in finished form and rather produce finished goods from semi-finished inventory only upon receiving final order. One of the vital building blocks of push-pull supply chain strategy is postponement. The main objective of this review paper is to discuss the concept of postponement and its sub-categories such as product postponement and process postponement and their benefits. Then it is investigated how two prominent fast fashion retailers who are also categorized as original brand manufacturers in the apparel value chain apply the two variants of process postponement e.g. process standardization and process re-sequencing in their manufacturing operations to activate push pull supply chain strategy. The push-pull supply chain strategy in turn helps to reduce their order-to-delivery lead time to stores, reduce inventory holding level and minimize both physical costs and market mediation costs. The paper ends with concluding remarks. A framework is developed to illustrate the push-pull supply mechanism. This paper is a useful resource for practitioners in apparel supply chain willing to remove inefficiencies, costs and risks in their operations.

Revenue Sharing in a Two-Stage Supply Chain with Linear Stepwise Unit Inventory Holding Cost

2011 ◽  
pp. 254-274
Author(s):  
Jing Hou ◽  
Amy Z. Zeng ◽  
Lindu Zhao
Keyword(s):  
Supply Chain ◽  
Revenue Sharing ◽  
Sequential Optimization ◽  
Inventory Level ◽  
Two Stage ◽  
Channel Relationship ◽  
Holding Cost ◽  
Inventory Holding Cost ◽  
Inventory Holding ◽  
Optimization Mechanism

In this chapter we focus on examining the coordination mechanisms for a two-stage supply chain comprising one supplier and one retailer. We consider such a channel relationship that the transaction quantity between the two members is sensitive to the supplier’s inventory level and that the supplier’s unit inventory holding cost has a linear stepwise structure. We devise a coordinated revenue-sharing contract with bargaining so that each party’s respective profit is better than that resulted from the simple sequential optimization mechanism. The key contract parameters, namely the supplier’s inventory level and the retailer’s revenue-sharing fraction, are obtained and analyzed. Numerical illustrations of the contracts are given and shed lights on how the supply chain should coordinate in order to gain better performance.

A PSO Weighted Estimating the Mean Downstream Demand to Mitigate the Bullwhip Effect in a Supply Chain

2011 ◽  
Vol 383-390 ◽  
pp. 4125-4129
Author(s):  
Ling Tzu Tseng
Keyword(s):  
Particle Swarm Optimization ◽  
Supply Chain ◽  
Particle Swarm ◽  
Bullwhip Effect ◽  
Pso Algorithm ◽  
Inventory Level ◽  
Inventory Cost ◽  
Swarm Optimization ◽  
Demand Information ◽  
Batch Ordering

Bullwhip Effect, Particle Swarm Optimization, Supply Chain, Demand Information Abstract. A deformation phenomenon occurring in business activity, called the bullwhip effect which comes from the demand information is not fully shared among the members of a supply chain, conducts the upstream manufacturer to excessively anticipate the demand capacity of the downstream retailer. The manufacturer improperly decides the amount of the products not only to raise the inventory cost on the way of poorly handling the actually downstream demand, but also to lose the chance of business deals due to its backordering. To cope with the bullwhip effect by taking into account the holding and backorder costs, an evolutionary method based on the Particle Swarm Optimization (PSO) algorithm to estimate the critical parameter, mean downstream demand, is proposed and computer validated in this paper such that the estimated inventory level could be close the really batch ordering of the manufacturer.

Extenuating Whip-Lash Effect in Multi-Echelon SCM in Steel Processing Industry Using Optimization Model

2016 ◽  
Vol 16 (4) ◽  
Author(s):  
A. Naga Phaneendra ◽  
Diwakar Reddy Vanimireddy ◽  
Krishnaiah Gidda
Keyword(s):  
Supply Chain ◽  
Optimization Model ◽  
Bullwhip Effect ◽  
Demand Forecast ◽  
Holding Costs ◽  
Multiple Products ◽  
Steel Processing ◽  
Simple Exponential Smoothing ◽  
Smoothing Parameters ◽  
Optimal Set

AbstractForecasting of inventory is an enigma to various firms at different echelon levels of supply chain. Abnormality in forecasting an inventory may leads to fluctuations in upstream supply chain. On upswing it can be uneconomical in terms of stock-out cost, while on the down trend it can be expensive in terms of stock holding costs. To amend the firms efficiency, in this paper the model developed by (Akhtar Tanveer et al. An Optimization model for Mitigating Bullwhip-Effect in a Two-Echelon Supply chain. Int conf Traf Transp Stud 2014;138:289-97) is successfully applied to steel processing firm to mitigate the Bull-whip or Whip-lash effect in the supply chain. The objective function is to minimize the variation between the actual order quantity and demand forecast of multiple products at various echelons and the simple exponential smoothing is compiled to forecast the demand of products. The model is furthermore validated by an illustration of seven products and it depicts that the model emanates an optimal set of smoothing parameters to attenuate the whip-lash effect.

Self-organisation and supply chain agility: empirical evidence from humanitarian relief operations in a developing country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Henry Mutebi ◽  
Moses Muhwezi ◽  
John C. Kigozi Munene
Keyword(s):  
Supply Chain ◽  
Empirical Evidence ◽  
Developing Country ◽  
Humanitarian Relief ◽  
Cross Sectional ◽  
Content Type ◽  
Supply Chain Agility ◽  
Self Organisation ◽  
Relief Operations ◽  
Cross Sectional Design

PurposeThe purpose of this study was to establish whether self-organisation and its components matter for supply chain agility in the context of humanitarian relief operations in a developing country, Uganda.Design/methodology/approachThis study adopted a cross-sectional design to collect data from a sample of 101 humanitarian organisations (HOs) that deliver relief to Bidi-Bidi refugee settlement in Uganda.FindingsBased on the findings, self-organisation explains 56% of the variance in supply chain agility.Research limitations/implicationsSince the study was cross-sectional, changes in the perception of the subject matter could not be established. Hence, a longitudinal approach was recommended for subsequent studies. Data was collected only from HOs that deliver relief services in Bidi-Bidi refugee settlement.Practical implicationsIt is recommended that managers of HOs should ensure that their organisations have flexible, adaptive structures that can affect self-organisation during emergencies so as to increase the speed with which they respond to victims' needs.Originality/valueThis study generates significant empirical evidence on a less studied phenomenon in the humanitarian sector. It vividly highlights the effect of self-organisation on building supply chain agility.

Exploring a Downstream Demand Inference Strategy in a Decentralized Two-Level Supply Chain

2021 ◽  
pp. 1-65
Author(s):  
Youssef Tliche ◽  
Atour Taghipour ◽  
Béatrice Canel-Depitre
Keyword(s):  
Supply Chain ◽  
Mean Squared Error ◽  
Moving Average ◽  
Bullwhip Effect ◽  
Inventory Level ◽  
Squared Error ◽  
Forecasting Method ◽  
Demand Information ◽  
The Mean ◽  
Inference Strategy

A coordination approach for forecast operations, known as downstream demand inference, enables an upstream actor to infer the demand information at his formal downstream actor without the need for information sharing. This approach was validated if the downstream actor uses the simple moving average (SMA) forecasting method. To answer an investigative question through other forecasting methods, the authors use the weighted moving average (WMA) method, whose weights are determined in this work thanks to the Newton's optimization of the upstream average inventory level. Starting from a two-level supply chain, the simulation results confirm the ability of the approach to reduce the mean squared error and the average inventory level, compared to a decentralized approach. However, the bullwhip effect is only improved after a certain threshold of the parameter of the forecasting method. Still within the framework of the investigation, they carry out a comparison study between the adoption of the SMA method and the WMA method. Finally, they generalize their results for a multi-level supply chain.

OWNR problem with variable replenishment and inventory holding costs and quantity discounts

2018 ◽  
Vol 4 (10) ◽  
pp. 391-397
Author(s):  
Ercan Şenyiğit
Keyword(s):  
Supply Chain ◽  
Heuristic Algorithm ◽  
Heuristic Method ◽  
Quantity Discounts ◽  
Total System ◽  
Order Quantity ◽  
Holding Costs ◽  
Cost Parameters ◽  
Inventory Holding ◽  
Order Intervals

We consider an inventory/distribution system consisting of one warehouse and N retailers (OWNR). Warehouse replenishes its orders from external supplier and supplies all orders of retailers. The objective of this paper is to maximise supply chain benefits of the whole system. To achieve this objective SENYIGIT and AKKAN’s heuristic algorithm is used. We assume that demand is constant and deterministic; shortages are not allowed and lead times are negligible. Total system cost consists of order-quantity-dependent replenishment and inventory holding cost parameters, and quantity discounts are applicable. The main idea of new heuristic is to compare replenishment and inventory holding costs while manipulating the order quantity by order intervals of locations. While balance condition is searched by new version of SENYIGIT and AKKAN’s heuristic algorithm, quantity discounts and replenishment costs will reduce costs of whole systems. Capital limit constraint is also included to the model of objective function. The algorithm is developed for quantity discounts and 100 datasets randomly generated for the system that contains five retailers and the solutions were obtained by developed heuristic. Keywords: Supply chain management, two echelon inventory systems, integer-ratio policies, quantity discounts, heuristic method, variable cost parameters.

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