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.

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.

scholarly journals Engineering patterns of supply chain optimization to manage oscillation effect

2017 ◽  
Vol 15 (2) ◽  
pp. 124-139
Author(s):  
Thokozani Patmond Mbhele
Keyword(s):  
Supply Chain ◽  
Sampling Technique ◽  
Bullwhip Effect ◽  
Modern Technology ◽  
Supply Chain Optimization ◽  
Upstream Site ◽  
Oscillation Effect ◽  
Innovative Strategies ◽  
Product Availability ◽  
Real Time Information

The cascading order variability from downstream trumping up the upstream site of the supply chain network indicates the deleterious effect to the performance of the fast moving consumer goods industry. The fundamental likelihood to optimization in this industry requires dexterous flows of quasi-real-time information, as well as reliable product availability. In this context, this study analyzes the challenges of bullwhip effect on the perspective of ingenious optimization strategies, and further contemplates to establish the engineering patterns of interrelationships on the magnitude of pooling the resources to advance supply chain capabilities. The suppression of bullwhip effect on underlying optimization strategies is sought to elevate accelerated responsiveness, improve network demand visibility and reduce volatility in frequencies to inventory replenishment. A rigorous and disciplined quantitative approach afforded the tentatively development of pattern of interrelated supply chain dimensions. The factor analysis method was used on 448 responses and insightful findings were produced from the compelling purposive sampling technique. The findings indicate that the magnitude of better ameliorating bullwhip effect, the value of competitive economic information and strength of selected optimization strategies depend on the model of unified engineering patterns. This paper provides insights to FMCG industry on using innovative strategies and modern technology to enhance supply chain visibility through integrated systems networks.

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 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.

Configuration of supply chain integration and delivery performance

2016 ◽  
Vol 11 (1) ◽  
pp. 43-74 ◽  
Author(s):  
Premaratne Samaranayake ◽  
Tritos Laosirihongthong
Keyword(s):  
Supply Chain ◽  
Performance Evaluation ◽  
Performance Measures ◽  
Supply Chain Performance ◽  
Chain Model ◽  
Content Type ◽  
Delivery Performance ◽  
Supply Chain Model ◽  
Evaluation And Monitoring ◽  
Integrated Supply Chain

Purpose – The purpose of this paper is to develop a conceptual framework of integrated supply chain model that can be used to measure, evaluate and monitor operational performance under dynamic and uncertain conditions. Design/methodology/approach – The research methodology consists of two stages: configuration of a conceptual framework of integrated supply chain model linked with performance measures and illustration of the integrated supply chain model and delivery performance using a case of dairy industry. The integrated supply chain model is based on a unitary structuring technique and forms the basis for measuring and evaluating supply chain performance. Delivery performance with variation of demand (forecast and actual) is monitored using a fuzzy-based decision support system, based on three inputs: capacity utilization (influenced by production disruption), raw materials shortage and quality of dairy products. Findings – Integration of supply chain components (materials, resources, operations, activities, suppliers, etc.) of key processes using unitary structuring approach enables information integration in real time for performance evaluation and monitoring in complex supply chain situations. In addition, real-time performance monitoring is recognized as being of great importance for supply chain management in responding to uncertainties inherent in the operational environment. Research limitations/implications – Implementation of an integrated model requires maintenance of supply chain components with all necessary data and information in a system environment such as enterprise resource planning. Practical implications – The integrated model provides decision-makers with an overall view of supply chain components and direct links that need to be maintained for supply chain performance evaluation and monitoring. Wider adaptation and diffusion of the proposed model require further validation of the model and feasibility of implementation, using real-time data and information on selected performance measures. Originality/value – Integration of supply chain components across supply chain processes directly linked with performance measures is a novel approach for effective supply chain performance evaluation and monitoring in complex supply chains under dynamic and uncertain conditions.

A multi-retailer supply chain model with backorder and variable production cost

2018 ◽  
Vol 52 (3) ◽  
pp. 943-954 ◽  
Author(s):  
Arunava Majumder ◽  
Chandra K. Jaggi ◽  
Biswajit Sarkar
Keyword(s):  
Supply Chain ◽  
Production Rate ◽  
Production Cost ◽  
Optimization Technique ◽  
Chain Model ◽  
Supply Chain Network ◽  
Supply Chain System ◽  
Supply Chain Model ◽  
Multiple Buyers ◽  
Variable Production

The modern marketing environment involves variability and randomness within the numerous parties of any supply chain network. Thus, formation of a supply chain model including multiple buyers and variable production rate is more acceptable than assuming a single-buyer with constant production rate model. This paper considers a supply chain network, where a single-vendor manufactures products in a batch production process and supplies them to a set of buyers over multiple times. Instead of assuming a fixed production rate, as commonly used in the literature, a variable production rate is introduced by the vendor and the production cost of the vendor is treated as a function of production rate. The continuous review inventory model is applied for multiple buyers to inspect inventory levels and a crashing cost is incurred by all buyers to reduce their lead times. The lead time demand follows a normal distribution. The unsatisfied demands at the buyers end are partially backordered. A model is formulated to minimize the joint expected cost of the vendor-buyers supply chain system. A classical optimization technique is utilized to solve the model. An improved algorithm is developed to obtain the numerical solution of the model. Finally, numerical examples are given to illustrate the model.

scholarly journals The Impact of Lead Time Uncertainty on Supply Chain Performance Considering Carbon Cost

2019 ◽  
Vol 11 (22) ◽  
pp. 6457
Author(s):  
Li ◽  
Fei ◽  
Zhou ◽  
Gajpal ◽  
Chen
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Lead Times ◽  
Supply Chain Performance ◽  
Chain Model ◽  
Carbon Cost ◽  
Inventory Costs ◽  
Time Uncertainty ◽  
Supply Chain Model ◽  
Lead Time Uncertainty

In supply chain operation practices, lead time uncertainty is a common management issue. Uncertain lead time can lead to increased inventory costs and unstable service levels, which will directly affect the overall operation performance of the supply chain. While considering environmental performance in supply chain, it is important to understand how an uncertain lead time will affect sustainable performance. In this paper, we constructed a supply chain model with stochastic lead time and explored the relationship between uncertain lead time and supply chain performance. We considered carbon cost, inventory cost, and service level as a supply chain performance. System dynamics methodology was employed to observe and explore the dynamic change trend of the overall performance in the complicated supply chain model. This was done under both different levels of lead time standard deviation and different order policies. The results demonstrate how stochastic lead times can significantly increase inventory costs and carbon costs. Therefore, we propose appropriate ordering policies which mitigate the negative impacts of stochastic lead times.

Multi-Objective Optimization of Economic and Environmental Aspects of a Three-Echelon Supply Chain

2019 ◽  
pp. 127-158
Author(s):  
Rajaram R. ◽  
Jawahar N. ◽  
S. G. Ponnambalam ◽  
Mukund Nilakantan Janardhanan
Keyword(s):  
Supply Chain ◽  
Co2 Emission ◽  
Chain Model ◽  
Supply Chain Network ◽  
Multi Objective ◽  
Multi Objective Genetic Algorithm ◽  
Environmental Objectives ◽  
Proposed Model ◽  
Supply Chain Model ◽  
Front Solutions

It is very relevant in today's competitive world for suppliers to ensure that customer-demanded products are made available. Customers expect to obtain a product that has benefits and are available within an acceptable price and time. It is necessary for companies to optimally use their ability to satisfy customers' specified needs. Researchers and industries are working on developing green supply chain concept in the last few years due to environmental concerns. The objective of this chapter is to propose a three-echelon supply chain model that optimizes economic and environmental objectives simultaneously. The objectives considered are minimizing the total supply chain cost and minimizing CO2 emission of the supply chain network. The proposed model falls into NP-hard category. Multi-objective genetic algorithm is proposed to solve the proposed model and illustration is provided to explain the use of the proposed model. A procedure that could be followed to find the best possible solution based on user's choice among the Pareto front solutions is also explained.

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