Study on countermeasures that reduce reverse bullwhip effect in county retail supply chain

2012 ◽  
Author(s):  
Zhaohui Liu ◽  
Yuwen Wu
Keyword(s):  
Supply Chain ◽  
Bullwhip Effect ◽  
Reverse Bullwhip Effect

scholarly journals Reverse bullwhip effect: duality of a dynamic model of Supply Chain

2020 ◽  
Vol 11 (6) ◽  
pp. 2043
Author(s):  
Gabriela Dias Brito ◽  
Pedro Dias Pinto ◽  
Adriano David Monteiro de Barros
Keyword(s):  
Supply Chain ◽  
Dynamic Model ◽  
Control Strategies ◽  
Dynamic Control ◽  
Bullwhip Effect ◽  
Stability Conditions ◽  
Reverse Effect ◽  
Production Rates ◽  
Inventory Dynamics ◽  
Reverse Bullwhip Effect

This study aims to investigate control strategies for the bullwhip effect based on a dynamic model of the linear supply chain, proposed by Helbing and Lammer (2005), which describes the inventory dynamics and production rates of productive units. We simulated the model for instability and stability conditions defined by mathematical analysis. Through these results, we verified both classical and reverse bullwhip effects associated with instability and stability conditions, respectively. The model revealed a duality once the control strategy proposed by Helbing and Lamer (2005) for the classical bullwhip effect ends up causing a reverse effect, which is equally troubling. In the reverse bullwhip effect, we observed amplification of the production rates in the network chains from the supplier to the customer in a way that the upstream chain was not able to meet the needs of the downstream chain. To withhold both effects, we suggest the dynamic control of the parameters that describe the network based on Helbing and Lammer (2005) model.

A Review on the Application of Neural Networks for Decreasing Bullwhip Effect in Supply Chain

2015 ◽  
Vol 9 (5) ◽  
pp. 438
Author(s):  
Milad Yousefi ◽  
Moslem Yousefi ◽  
Ricardo Poley Martins Ferreira
Keyword(s):  
Neural Networks ◽  
Supply Chain ◽  
Bullwhip Effect

Classification of Operational and Financial Variables Affecting the Bullwhip Effect in Indian Sectors: A Machine Learning Approach

2019 ◽  
Vol 12 (3) ◽  
pp. 171-179 ◽  
Author(s):  
Sachin Gupta ◽  
Anurag Saxena
Keyword(s):  
Machine Learning ◽  
Data Mining ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Product Life Cycle ◽  
Consumer Preference ◽  
Bullwhip Effect ◽  
Machine Learning Techniques ◽  
Chain Management ◽  
Financial Variables

Background: The increased variability in production or procurement with respect to less increase of variability in demand or sales is considered as bullwhip effect. Bullwhip effect is considered as an encumbrance in optimization of supply chain as it causes inadequacy in the supply chain. Various operations and supply chain management consultants, managers and researchers are doing a rigorous study to find the causes behind the dynamic nature of the supply chain management and have listed shorter product life cycle, change in technology, change in consumer preference and era of globalization, to name a few. Most of the literature that explored bullwhip effect is found to be based on simulations and mathematical models. Exploring bullwhip effect using machine learning is the novel approach of the present study. Methods: Present study explores the operational and financial variables affecting the bullwhip effect on the basis of secondary data. Data mining and machine learning techniques are used to explore the variables affecting bullwhip effect in Indian sectors. Rapid Miner tool has been used for data mining and 10-fold cross validation has been performed. Weka Alternating Decision Tree (w-ADT) has been built for decision makers to mitigate bullwhip effect after the classification. Results: Out of the 19 selected variables affecting bullwhip effect 7 variables have been selected which have highest accuracy level with minimum deviation. Conclusion: Classification technique using machine learning provides an effective tool and techniques to explore bullwhip effect in supply chain management.

A Fuzzy agent-based model for reduction of bullwhip effect in supply chain systems

2008 ◽  
Vol 34 (3) ◽  
pp. 1680-1691 ◽  
Author(s):  
M.H. Fazel Zarandi ◽  
M. Pourakbar ◽  
I.B. Turksen
Keyword(s):  
Supply Chain ◽  
Bullwhip Effect ◽  
Agent Based Model ◽  
Agent Based

Buffet Effect Simulation Model on Demand Chain Management

2010 ◽  
Vol 44-47 ◽  
pp. 688-692
Author(s):  
Xiao Yan Wang ◽  
Jian Sun
Keyword(s):  
Supply Chain ◽  
Side Information ◽  
Bullwhip Effect ◽  
Chain Management ◽  
Demand Chain ◽  
Supply Chain Efficiency ◽  
Demand Fluctuations ◽  
Partner Collaboration ◽  
Transmission Ability ◽  
Demand Chain Management

Bullwhip effect means the magnification of demand fluctuations, which is evident in a supply chain when demand increases and decreases, while the concept of Demand Chain Management means to make the planning on the basis of the demand side information so as to solve the problem of inconsistent upstream and downstream information by means of partner collaboration in the supply chain. Demand chain emphasizes the customer demand as its core value so as to achieve the best balance between the supply chain efficiency and customer satisfaction. Compared with the supply chain, the demand chain advises the enterprise to strengthen the information transmission ability to promote the performance. Under the demand chain management, the extent of bullwhip effect are weakened, and the fluctuation range against demand chain management is lower than against traditional supply chain.

Vertical Contracts in a Supply Chain and the Bullwhip Effect

2020 ◽  
Author(s):  
Zhan Qu ◽  
Horst Raff
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Operations Management ◽  
Bullwhip Effect ◽  
Price Effect ◽  
Demand Shocks

This paper shows that decentralized supply chains, in which upstream firms use linear wholesale prices, may experience lower upstream production and downstream sales volatility than vertically integrated supply chains and may be less susceptible to the bullwhip effect by which the variance of upstream production exceeds the variance of downstream sales. The reason is that decentralized supply chains exhibit a price effect, whereby upstream producers raise wholesale prices in the case of positive demand shocks and lower wholesale prices in the case of negative demand shocks. Whereas upstream producers benefit from the price effect and, thus, from a dampening of the bullwhip effect, downstream firms may lose, and overall supply chain profit may decrease. This paper was accepted by Vishal Gaur, operations management.

Optimization Control of the Bullwhip Effect in Supply Chain Inventory

2014 ◽  
Vol 945-949 ◽  
pp. 3187-3190
Author(s):  
Hai Dong ◽  
Jin Hua Liu ◽  
Liang Yu Liu
Keyword(s):  
Mathematical Model ◽  
Supply Chain ◽  
Control Theory ◽  
Inventory Control ◽  
Pid Controller ◽  
Bullwhip Effect ◽  
Control Gain ◽  
Optimization Control ◽  
Suitable Combination ◽  
The Mathematical Model

The bullwhip effect was caused by fuzzy demand among the enterprises. In order to reduce this effect, control theory was applied to solve the inventory in supply chain. Firstly, inventory control in supply chain and the bullwhip effect was researched. Secondly, a kind of proportional integral differential (PID) controller was developed for inventory control in a three-level supply chain, and the mathematical model of the PID controller for inventory control was presented. Finally, the results show that the PID controller can evidently alleviate the bullwhip effect and inventory fluctuations under the suitable combination of control gain.

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