Some Simulation Results on Bullwhip Effect in Supply Chain with Several Dealers

2013 ◽  
Vol 774-776 ◽  
pp. 1979-1986
Author(s):  
Shin Sc Woo ◽  
Ya Hui Li ◽  
Xi Feng Lu ◽  
Yu Quan Du
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Dynamic Simulation ◽  
Bullwhip Effect ◽  
Experimental Results ◽  
Chain Model ◽  
Supply Chain Model ◽  
Simulation Results

In order to discuss the bullwhip effect in the supply chain with several dealers, a four-level supply chain model is developed based on system dynamics. Through the use of dynamic simulation, the bullwhip effect was evaluated based on several factors such as return proportion, direct utilization proportion of recycling products and sales plan of each dealer. Experimental results show that a higher return proportion and a more direct utilization of recycled products can mitigate the bullwhip effect. Moreover, different sales plan of each dealer has various degrees of influence on the bullwhip effect.

Analysis and Verification of Bullwhip Effect Based on System Dynamics

2013 ◽  
Vol 340 ◽  
pp. 312-319
Author(s):  
Fu Xin Yang ◽  
Bai Lan Zhang ◽  
Zhi Yuan Su
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Correlation Coefficient ◽  
Lead Time ◽  
Process Model ◽  
Autoregressive Process ◽  
Bullwhip Effect ◽  
Simulation Software ◽  
Simulation Results ◽  
The Impact

To study the bullwhip effect (BWE) in supply chain (SC), this paper built two system dynamics (SD) models strictly referring to the AR(1) (autoregressive process) model constructed by Frank Chen. Using Vensim simulation software, it analyzed the impact of the correlation coefficient of demand, lead time, smoothing time of demand and information to BWE, and then put forward some proposals on how to reduce BWE. By contrasting the simulation results of SD models with the AR(1) models', it verifies the validity of the AR(1) model of Frank Chen from a simulation perspective. It also shows SD model combined with AR(1) model can analyze BWE in SC reliably and powerfully.

scholarly journals Study of the Bullwhip Effect in a Multistage Supply Chain with Callback Structure considering Two Retailers

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-12 ◽  
Author(s):  
Junhai Ma ◽  
Liqing Zhu ◽  
Ye Yuan ◽  
Shunqi Hou
Keyword(s):  
Supply Chain ◽  
Moving Average ◽  
Bullwhip Effect ◽  
Lead Times ◽  
Chain Model ◽  
Supply Chain System ◽  
Forecasting Method ◽  
Supply Chain Model ◽  
The Impact ◽  
Demand Processes

With the purpose of researching the bullwhip effect when there is a callback center in the supply chain system, this paper establishes a new supply chain model with callback structure, which has a material supplier, a manufacture, and two retailers. The manufacture and retailers all employ AR(1) demand processes and use order-up-to inventory policy when they make order decisions. Moving average forecasting method is used to measure the bullwhip effect of each retailer and manufacture. We investigate the impact of lead-times of retailers and manufacture, forecasting precision, callback index, and marketing share on the bullwhip effect of both retailers and manufacture. Then we use the method of numerical simulation to indicate the different parameters in this supply chain. Furthermore, this paper puts forward some suggestions to help the enterprises to control the bullwhip effect in the supply chain with callback structure.

scholarly journals Decoupling paradigm of push-pull theory of oscillation in the FMCG industry

2016 ◽  
Vol 47 (2) ◽  
pp. 53-66 ◽  
Author(s):  
T.P. Mbhele
Keyword(s):  
Supply Chain ◽  
Bullwhip Effect ◽  
Modern Technology ◽  
Supply Chain Performance ◽  
Chain Model ◽  
Supply Chain Network ◽  
Innovative Strategies ◽  
Supply Chain Model ◽  
Demand Information ◽  
Order Variability

The amplification of demand order variability germinates from distorted demand information upstream while sometimes reacting to demand-driven inventory positioning influenced by the custodians of downstream information. This studyuses factor analysis to tentatively develop a supply chain model to enhance the competence of supply chain performance in terms of responsiveness, connectivity and agility. The results of the analysis indicate that the magnitude of control on the bullwhip effect and access to economic information on demand orders in the supply chain network are associated with the modelling of the push-pull theory of oscillation on three mirror dimensions of supply chain interrelationships (inventory positioning, information sharing and electronically-enabled supply chain systems). The findings provide the perspective on managing amplification in consumer demand order variability upstream in the supply chain network while enhancing the overall efficiency of supply chain performance. This article provides insight into the use of innovative strategies and modern technology to enhance supply chain visibility through integrated systems networks.

scholarly journals Complexity Uncertainty Analysis of Dynamic in a Dual-Channel Energy Supply Chain Model with Heterogeneous Retailers

2015 ◽  
Vol 2015 ◽  
pp. 1-10 ◽  
Author(s):  
Ting Li ◽  
Junhai Ma ◽  
Lijian Sun
Keyword(s):  
Supply Chain ◽  
Energy Supply ◽  
Control Method ◽  
Three Dimensional ◽  
Chain Model ◽  
Negative Effects ◽  
Dual Channel ◽  
Expectations Formation ◽  
Supply Chain Model ◽  
Simulation Results

This paper analyses the dynamics of dual-channel energy supply chain model with heterogeneous retailers (as regards the type of expectations’ formation). On the basis of analyzing the stabilities of four fixed points in the three-dimensional dynamic system, local stable regions of Nash equilibrium are obtained. Effects ofSon the stable regions and profit are studied. Simulation results show that the adjustment of price speed has an obvious impact on the complexity of competition. The performances of the model in different period are measured by using the index of average profit. The results show that unstable behavior in economic system is often an unfavorable outcome. So this paper discusses the application of parameters control method when the model is in chaos and then allows the oligarchs to eliminate the negative effects.

Information Sharing in Supply Chain Management with Demand Uncertainty

2011 ◽  
pp. 44-62 ◽  
Author(s):  
Zhensen Huang ◽  
Aryya Gangopadhyay
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Demand Uncertainty ◽  
Bullwhip Effect ◽  
Supply Chain Performance ◽  
Chain Model ◽  
Simulation Approach ◽  
Supply Chain Model ◽  
Trading Partners ◽  
The Impact

Information sharing is a major strategy to counteract the amplification of demand fluctuation going up the supply chain, known as the bullwhip effect. However, sharing information through interorganizational channels can raise concerns for business management from both technical and commercial perspectives. The existing literature focuses on examining the value of information sharing in specific problem environments with somewhat simplified supply chain models. The present study takes a simulation approach in investigating the impact of information sharing among trading partners on supply chain performance in a comprehensive supply chain model that consists of multiple stages of trading partners and multiple players at each stage.

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