scholarly journals Exploring the Impact of Network Structure and Demand Collaboration on the Dynamics of a Supply Chain Network Using a Robust Control Approach

2015 ◽  
Vol 2015 ◽  
pp. 1-13 ◽  
Author(s):  
Yongchang Wei ◽  
Hongwei Wang ◽  
Fangyu Chen

A supply chain network might exhibit complex dynamics in the face of increasingly volatile and uncertain environment. The impact of network structure and collaboration on the dynamics and robustness of supply chain network, however, remains to be explored. In this paper, a unified state space model for a two-layer supply chain network composed of multiple distributors and multiple retailers is developed. A robust control algorithm is advocated to reduce both order and demand fluctuations for unknown demand. Numerical simulations demonstrate that the robust control approach has the advantage to reduce both inventory and order fluctuations. In the simulation experiment, it is interesting to notice that complex network structure and collaborations might contribute to the reduction of inventory and order oscillations. This paper yields new insights into the overestimated bullwhip effect problem and helps us understand the complexities of supply chain networks.

2019 ◽  
Vol 6 (1) ◽  
pp. 19-26 ◽  
Author(s):  
Prabhat Mittal

The present study is an attempt to quantify the Bullwhip Effect (BWE) -the phenomenon in which information on demand is distorted in moving up a supply chain. Assuming that the retailer employs an order-up-to level policy with auto-regressive process (AR), the paper investigates the influence of forecasting methods on bullwhip effect. Determining the order-up-to levels and the orders for the retailers’ demands in an isolated manner neglects the correlation of the demands and the relevant risk pooling effects associated with the network structure of the supply chains are disregarded. It is illustrated that the bullwhip effects are significantly reduced with consideration of potential correlation between the retailers’ demand.


Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-17 ◽  
Author(s):  
Songtao Zhang ◽  
Min Zhang

Uncertainties and lead times make the closed-loop supply chain (CLSC) more complex, less stable, and then the bullwhip effect (BE) will become more intense. This paper will address a fuzzy robust control (FRC) approach to mitigate the BE in the uncertain CLSC with lead times. For the reverse channels for products in the CLSC, the customers’ used products are recycled by both the manufacturer and the third party recovery provider, and new products bought by customers within a certain period of time can be returned to the retailer. In the CLSC system, the state transformation equations of the inventories and the total operation cost are set up. A new FRC approach is proposed to mitigate the BE and realize the robust stability of the uncertain CLSC with lead times. A simulation example verifies the mitigation effect of the BE under the proposed FRC approach.


2010 ◽  
Vol 44-47 ◽  
pp. 688-692
Author(s):  
Xiao Yan Wang ◽  
Jian Sun

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.


2012 ◽  
Vol 02 (07) ◽  
pp. 21-28
Author(s):  
Maryam Mahdikhani ◽  
Asadolah Khahande Karnama ◽  
Milad Beirami

Electronic Business (e-Business) is revolutionizing the way of communication between Internal and external stakeholders in an organization. E-business can lead to competitive advantage and at the same time, increase profitability. There are several factors resulting on the success of e-business. One of the most important factors is Security. It is thus clear that information technology (IT) and the emerging e-business application and related to security are gaining a pivotal role in managing supply chain. This paper examines the impact of E-business on supply chain on information security aspect among other types of supply chains. The current paper reviews security and supply chain literatures and then investigates framework of information technology in supply chain management. Areas of supply chain which need security attention are then proposed in e-supply chain information security framework and this will be considered as a guideline for managers to find out if their e-supply chain network is secure enough. Through the paper, one realizes that Information Security in every information based-system will be vital.


2020 ◽  
Vol 11 (4) ◽  
pp. 38-53
Author(s):  
Robin Singh Bhadoria ◽  
Neha Sharma ◽  
Manish Kumar Pandey

Modern supply chain management systems have evolved into a complex and critical system. Thus, it has grown more interesting to verify the source of products and its visibility as it is moving through the supply chain network. The application of blockchain technology and Internet of Things (IoT) are likely to affect the supply chain management objectives such as cost, quality, speed, dependability, risk reduction, sustainability, and flexibility. This paper presented the concept of how blockchain technology and IoT can help to achieve supply chain objectives. This research focuses on the impact of blockchain on current and future supply chain management systems.


2019 ◽  
Vol 14 (2) ◽  
pp. 360-384 ◽  
Author(s):  
Maria Drakaki ◽  
Panagiotis Tzionas

PurposeInformation distortion results in demand variance amplification in upstream supply chain members, known as the bullwhip effect, and inventory inaccuracy in the inventory records. As inventory inaccuracy contributes to the bullwhip effect, the purpose of this paper is to investigate the impact of inventory inaccuracy on the bullwhip effect in radio-frequency identification (RFID)-enabled supply chains and, in this context, to evaluate supply chain performance because of the RFID technology.Design/methodology/approachA simulation modeling method based on hierarchical timed colored petri nets is presented to model inventory management in multi-stage serial supply chains subject to inventory inaccuracy for various traditional and information sharing configurations in the presence and absence of RFID. Validation of the method is done by comparing results obtained for the bullwhip effect with published literature results.FindingsThe bullwhip effect is increased in RFID-enabled multi-stage serial supply chains subject to inventory inaccuracy. The information sharing supply chain is more sensitive to the impact of inventory inaccuracy.Research limitations/implicationsInformation sharing involves collaboration in market demand and inventory inaccuracy, whereas RFID is implemented by all echelons. To obtain the full benefits of RFID adoption and collaboration, different collaboration strategies should be investigated.Originality/valueColored petri nets simulation modeling of the inventory management process is a novel approach to study supply chain dynamics. In the context of inventory errors, information on RFID impact on the dynamic behavior of multi-stage serial supply chains is provided.


2019 ◽  
Vol 31 (3) ◽  
pp. 467-490 ◽  
Author(s):  
Asama Alglawe ◽  
Andrea Schiffauerova ◽  
Onur Kuzgunkaya ◽  
Itad Shiboub

Purpose The purpose of this paper is to explore the impact of the cost of quality (COQ) expenditure allocations on a capacitated supply chain (SC) network. Design/methodology/approach This paper proposes a non-linear optimization model which integrates the opportunity cost (OC) (i.e. customer satisfaction cost), into the COQ with consideration of the QL in the supply chain network design decisions. In addition, it examines the effect of considering an investment at each SC echelon to ensure the best overall QL. A numerical example is presented to illustrate the behavior of the model. Findings The results show how the QL, COQ and facility location decisions change when incorporating the OC, investments and transportation costs into the SC model. Originality/value The novelty of this paper is that it considers the effect of OC, investment at each echelon and transportation costs on SC design by minimizing the overall spending on the COQ. These issues have not been explored, and for that reason, this paper contributes to the understanding of the critical factors that optimizes the SC COQ.


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