Research manuscript: The Bullwhip Effect in rule-based supply chain planning systems–A case-based simulation at a hard goods retailer

The vision of a well-integrated supply chain (SC) was developed as early 1958 by Forrester, who addressed what would eventually be called the Bullwhip Effect (BWE). Flowcasting concept, originally Retail Resource Planning, proposed to connect all SC upper tiers storefront through fulfillment logic based on Distribution Planning (DRP) system. This method can therefore understood fully or SC-wide integrated DRP with focus role retailers instead that vendors distributors. We studied Canadian retailer implemented in order gain insight into benefits and operational this Based data obtained from company, we simulate operations across 3-tier compared Reorder Point (ROP) system, which previously used at firm, well combination ROP (ROP/DRP partially DRP), are some most common implementations use. simulation is configured company's settings, including historical average demand, demand estimates, lead time, etc. Then, multivariate regression deployed statistically compare efficacy these methods management using various assessment criteria, BWE measures. results show requirement calculation an system (Flowcasting) generally outperforms other two approaches, its curtailing become more noticeable SC. paper indicates enormous potential rule-based replenishment planning systems.