The implications of batching in the bullwhip effect and customer service of closed-loop supply chains

Batching is a well-known cause of the bullwhip effect. Despite being very common in many industries to leverage economies scale, it has been little explored due its nonlinear complexity. This work examines how order-quantity batching affects performance closed-loop supply chains, which are gaining importance as result their environmental and economic value. Specifically, we analyse hybrid system with both manufacturing remanufacturing operations. We observe that, when an order-up-to policy used serviceable inventory, always increasing function batch size. Nevertheless, smoothing replenishment rule used, chain behaves differently for low high volumes returns different degrees uncertainty they convey. In high-volume case, batches should also be small possible. contrast, low-volume can mitigated by setting size divisor mean production rate. However, this may lower customer service level achieved. find that reducing sizes prioritised over ones large. light our results, finally provide professionals specific suggestions on better manage chains where goods produced delivered batches.