Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Development of Analytical Tools for the Bullwhip Effect Control in Supply Chains : Quantitative Models and Decision Support System

공급사슬에서 채찍효과 관리를 위한 분석도구의 개발 : 정량화 모형과 의사결정지원시스템

  • Shim, Kyu-Tak (Department of Industrial Engineering, College of Advanced Engineering, Kyung Hee University) ;
  • Park, Yang-Byung (Department of Industrial Engineering, College of Advanced Engineering, Kyung Hee University)
  • 심규탁 (경희대학교 테크노공학대학 산업공학과) ;
  • 박양병 (경희대학교 테크노공학대학 산업공학과)
  • Published : 2009.03.31
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Abstract

The bullwhip effect is known as the significant factor which causes unnecessary inventory, lost sales or cost increase in supply chains. Therefore, the causes of the bullwhip effect must be examined and removed. In this paper, we develop two analytical tools for the bullwhip effect control in supply chains. First, we develop the quantitative models for computing the bullwhip effect in a three-stage supply chain consisted of a single retailer, a single distributor and a single manufacturer when the fixed-interval replenishment policy is applied at each stage. The quantitative models are developed under the different conditions for the demand forecasting and share of customer demand information. They are validated through the computational experiments. Second, we develop a simulation-based decision support system for the bullwhip effect control in a more diverse dynamic supply chain environment. The system includes a what-if analysis function to examine the effects of varying input parameters such as operating policies and costs on the bullwhip effect.

Keywords

References

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