Measuring the bullwhip effect in order-up-to policies with continuous and periodic review: A system dynamics simulation approach

Kianfar, S ; Sharif University of Technology | 2008

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  1. Type of Document: Article
  2. Publisher: 2008
  3. Abstract:
  4. The inventory replenishment policy exploited by a supply chain has a principle role in amplification of order variability compared to fluctuations in customers' demands. This phenomenon is known as the bullwhip effect. In this paper, a four echelon supply chain is simulated and the impacts of continuous and periodic review order-up-to policies on the bullwhip effect are examined. Experiments have been conducted to analyze the influence of the lead time in deterministic conditions, and also the variance of demand and lead time in stochastic circumstances on the bullwhip effect and the corresponding cost. It was observed that in low demand and lead time variances, it is more efficient to employ continuous review order-up-to policy. Moreover, in a system with fixed lead times the bullwhip effect is experienced less in the continuous review policy
  5. Keywords:
  6. Amplification ; Decision making ; Dynamics ; Management ; Risk analysis ; Risk management ; Supply chain management ; Supply chains ; Bullwhip effect ; Bullwhip effects ; Continuous reviews ; Inventory replenishments ; Lead times ; Order-up-to policies ; Periodic reviews ; Simulation ; System dynamics ; System dynamics simulations ; Competition
  7. Source: International Conference on Risk Management and Engineering Management, Toronto, ON, 18 April 2008 through 18 April 2008 ; 2008 , Pages 24-29 ; 9780978348458 (ISBN)
  8. URL: https://www.academia.edu/33371818/Measuring_the_bullwhip_effect_in_order_up_to_policies_with_continuous_and_periodic_review_A_system_dynamics_simulation_approach?auto=download