Revisiting the bullwhip effect: how can AI smoothen the bullwhip phenomenon?

How to Define the Bullwhip Effect

In our previous experiments of a supply chain using Beer Game, we found a counterexample for the bullwhip effect such that inventory level of the upstream firm is not always larger than that of the downstream firm even in the environment that the number of firms is many and the length of delay is longer. In this paper, we propose several quantitative definitions of the bullwhip effect and re-es...

Investigation the Combination of the Bullwhip Effect Weakening and the Anti-Bullwhip Effect Strengthen

Managing the Bullwhip Effect

The bullwhip effect is the inherent increase in demand fluctuation up the supply chain (i.e., away from customer). Managing the bullwhip effect is minimizing the fluctuation and variation of the demand (i.e., orders from one stage of a supply chain to the next stage of the supply chain) throughout the supply chain. This paper will offer a literature review of this topic, note the key contributi...

Returns and the bullwhip effect

An almost universal assumption in the bullwhip effect modeling literature is that excess goods may be returned without restriction. We seek to determine if returns impact the level of bullwhip effect observed in a multi-stage supply chain. We build a hybrid agent/ discrete-event simulation model of a supply chain and execute it under various conditions of demand variance, lead-time variance, in...

An Analytical Investigation of the Bullwhip Effect

T Bullwhip Effect is problematic: order variability increases as orders propagate along the supply chain. The fundamental differential delay equations for a retailer’s inventory reacting to a surge in demand are solved exactly. Much of the rich and complex inventory behavior is determined by the replenishment delay. The analytical solutions agree with numerical integrations and previous control...