Minimizing bullwhip effect in supply chains

Author

Duc, Truong Ton Hien ; Luong, Huynh Trung ; Kim, Yeong-Dae

Author_Institution

Planning & Oper. Manage., Singapore Inst. of Manuf. Technol., Singapore, Singapore

fYear

2010

fDate

7-10 Dec. 2010

Firstpage

225

Lastpage

229

Abstract

In this paper, the bullwhip effect in a two-stage supply chain with one supplier and two retailers is measured. The customer demand is assumed to be followed an AR(1) model and is forecasted at each retailer by using the minimum mean square error forecasting method. In addition, the retailers employ the base stock inventory policy. Among the findings of this research, it is interesting to note that the bullwhip effect in supply chains will be minimized as the retailers have the same market share.

Keywords

forecasting theory; least mean squares methods; stock control; supply chain management; supply chains; AR(1) model; base stock inventory policy; bullwhip effect minimization; customer demand; minimum mean square error forecasting method; retailers; supplier; supply chains; Autoregressive processes; Biological system modeling; Lead; Predictive models; Q measurement; Stochastic processes; Supply chains; Bullwhip effect; Stochastic lead time; Supply chain management;

fLanguage

English

Publisher

ieee

Conference_Titel

Industrial Engineering and Engineering Management (IEEM), 2010 IEEE International Conference on

Conference_Location

Macao

ISSN

2157-3611

Print_ISBN

978-1-4244-8501-7

Electronic_ISBN

2157-3611

Type

conf

DOI

10.1109/IEEM.2010.5674458

Filename

5674458