Returns and the bullwhip effect
نویسندگان
چکیده
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, information sharing, and return allowance. We find that permitting returns significantly increases the bullwhip effect. As a result, applying models that assume returns are permitted will systematically overestimate the bullwhip effect for supply chains that restrict returns. 2012 Elsevier Ltd. All rights reserved.
منابع مشابه
Bullwhip Entropy Analysis and Chaos Control in the Supply Chain with Sales Game and Consumer Returns
In this paper, we study a supply chain system which consists of one manufacturer and two retailers including a traditional retailer and an online retailer. In order to gain a larger market share, the retailers often take the sales as a decision-making variable in the competition game. We devote ourselves to analyze the bullwhip effect in the supply chain with sales game and consumer returns via...
متن کاملApplication of Åström’s method to supply chain inventory problems: A reverse logistics scenario
Abstract: A simple dynamic model of a hybrid manufacturing / remanufacturing system is investigated. In particular we study an infinite horizon, continuous time, APIOBPCS (Automatic Pipeline Inventory and Order Based Production Control System) model. We specifically highlight the effect of remanufacturing lead-time and the return rate on the inventory variance and bullwhip produced by the order...
متن کاملInvestigation the Combination of the Bullwhip Effect Weakening and the Anti-Bullwhip Effect Strengthen
متن کامل
On the Bullwhip Effect Measure in Supply Chains with VAR (1) Demand Process
In this paper, a two-echelon supply chain, which includes two products based on the following considerations, has been studied and the bullwhip effect is quantified. Providing a measure for bullwhip effect that enables us to analyze and reduce this phenomenon in supply chains with two products is the basic purpose of this paper. Demand of products is presented by the first order vector autoregr...
متن کاملChallenging Bullwhip Effect of Supply Chain through Case-Based Multi-Agent System: A Review
The supply chain system grow to be foremost division of all business organizations. Each organization pays the concentration to preserve the procession among the organizations’ services. The bullwhip effect is one of the main sweats faced in soft organization of the supply chain management system. This effect can influence the superiority of the services generated by finicky association. Withou...
متن کامل