Title :
Minimizing bullwhip effect in supply chains
Author :
Duc, Truong Ton Hien ; Luong, Huynh Trung ; Kim, Yeong-Dae
Author_Institution :
Planning & Oper. Manage., Singapore Inst. of Manuf. Technol., Singapore, Singapore
Abstract :
In this paper, the bullwhip effect in a two-stage supply chain with one supplier and two retailers is measured. The customer demand is assumed to be followed an AR(1) model and is forecasted at each retailer by using the minimum mean square error forecasting method. In addition, the retailers employ the base stock inventory policy. Among the findings of this research, it is interesting to note that the bullwhip effect in supply chains will be minimized as the retailers have the same market share.
Keywords :
forecasting theory; least mean squares methods; stock control; supply chain management; supply chains; AR(1) model; base stock inventory policy; bullwhip effect minimization; customer demand; minimum mean square error forecasting method; retailers; supplier; supply chains; Autoregressive processes; Biological system modeling; Lead; Predictive models; Q measurement; Stochastic processes; Supply chains; Bullwhip effect; Stochastic lead time; Supply chain management;
Conference_Titel :
Industrial Engineering and Engineering Management (IEEM), 2010 IEEE International Conference on
Conference_Location :
Macao
Print_ISBN :
978-1-4244-8501-7
Electronic_ISBN :
2157-3611
DOI :
10.1109/IEEM.2010.5674458
