Bullwhip effect problem in supply chains

Borut Buchmeister (Author), Jože Pavlinjek (Author), Iztok Palčič (Author), Andrej Polajnar (Author)

Abstract

In Supply Chain Management, a phenomenon called the "Bullwhip Effect" has attracted considerable attention. Overall supply chain evaluation needs to include the Bullwhip Effect. The Bullwhip Effect shows how small changes at the demand end of a supply chain are progressively amplified for operations further back in the chain. It is understood that demand forecast variance contributes to that effect in the chain. With this understanding, the authorsexperimented with two cases: stable demand with a single 5 % change in demand, and changing demand in periodic 10 % increases and later in the same decreases. Two stock keeping policies for all stages in the chain have been studied: to keep in stock i) one, and ü) two periods' demand. Results are shown in tables and charts. Increasing variability of production orders and stocks up the supply chain is evident. The effect indicates a lack of synchronization among supply chain members because of corrupt key information about actual demand. When we understand the nature of supply chain dynamics, there are several actions concerned with coordinating the activities of the operations in the chain, which is discussed in the last part of the paper.

Keywords

dobavna veriga;spreminjanje potreb;učinek biča;spreminjanje obsega proizvodnje;spremembe stanja zalog;supply chain;demand fluctuation;bullwhip effect;production rate variability;stock level variability;

Data

Language:	English
Year of publishing:	2008
Typology:	1.01 - Original Scientific Article
Organization:	UM FS - Faculty of Mechanical Engineering
UDC:	658.514.4
COBISS:	12061462
ISSN:	1854-6250
Parent publication:	Advances in production engineering & management
Views:	1562
Downloads:	29
Average score:	0 (0 votes)
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Other data

Secondary language:	English
Secondary keywords:	dobavna veriga;spreminjanje potreb;učinek biča;spreminjanje obsega proizvodnje;spremembe stanja zalog;
URN:	URN:SI:UM:
Pages:	str. 45-55
Volume:	ǂVol. ǂ3
Issue:	ǂno. ǂ1
Chronology:	Mar. 2008
Keywords (UDC):	applied sciences;medicine;technology;uporabne znanosti;medicina;tehnika;communication and transport industries;accountancy;business management;public relations;komunikacije in transport;knjigovodstvo;poslovni menedžment;stiki z javnostjo;business management;administration;commercial organization;poslovni menedžment;administracija;komercialna organizacija;production engineering and planning;design;production management and control;inženiring in planiranje;menedžment in kontrola proizvodnje;
ID:	1437560