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Adaptive fuzzy vendor managed inventory control for mitigating the Bullwhip effect in supply chains

Author

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  • Kristianto, Yohanes
  • Helo, Petri
  • Jiao, Jianxin (Roger)
  • Sandhu, Maqsood

Abstract

This paper proposes an adaptive fuzzy control application to support a vendor managed inventory (VMI). The methodology applies fuzzy control to generate an adaptive smoothing constant in the forecast method, production and delivery plan to eliminate, for example, the rationing and gaming or the Houlihan effect and the order batching effect or the Burbidge effects and finally the Bullwhip effect. The results show that the adaptive fuzzy VMI control surpasses fuzzy VMI control and traditional VMI in terms of mitigating the Bullwhip effect and lower delivery overshoots and backorders. This paper also guides management in allocating inventory by coordinating suppliers and buyers to ensure minimum inventory levels across a supply chain. Adaptive fuzzy VMI control is the main contribution of this paper.

Suggested Citation

  • Kristianto, Yohanes & Helo, Petri & Jiao, Jianxin (Roger) & Sandhu, Maqsood, 2012. "Adaptive fuzzy vendor managed inventory control for mitigating the Bullwhip effect in supply chains," European Journal of Operational Research, Elsevier, vol. 216(2), pages 346-355.
    • Handle: RePEc:eee:ejores:v:216:y:2012:i:2:p:346-355
    DOI: 10.1016/j.ejor.2011.07.051
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    Cited by:

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    3. Yang, Dong & Jiao, Jianxin (Roger) & Ji, Yangjian & Du, Gang & Helo, Petri & Valente, Anna, 2015. "Joint optimization for coordinated configuration of product families and supply chains by a leader-follower Stackelberg game," European Journal of Operational Research, Elsevier, vol. 246(1), pages 263-280.
    4. Dai, Hongyan & Li, Jianbin & Yan, Nina & Zhou, Weihua, 2016. "Bullwhip effect and supply chain costs with low- and high-quality information on inventory shrinkage," European Journal of Operational Research, Elsevier, vol. 250(2), pages 457-469.
    5. Roozbeh Nia, Ali & Hemmati Far, Mohammad & Akhavan Niaki, Seyed Taghi, 2014. "A fuzzy vendor managed inventory of multi-item economic order quantity model under shortage: An ant colony optimization algorithm," International Journal of Production Economics, Elsevier, vol. 155(C), pages 259-271.
    6. Ponte, Borja & Puche, Julio & Rosillo, Rafael & de la Fuente, David, 2020. "The effects of quantity discounts on supply chain performance: Looking through the Bullwhip lens," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    7. Rajesh, R., 2017. "Technological capabilities and supply chain resilience of firms: A relational analysis using Total Interpretive Structural Modeling (TISM)," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 161-169.
    8. Anupam Keshari & Nishikant Mishra & Nagesh Shukla & Steve McGuire & Sangeeta Khorana, 2018. "Multiple order-up-to policy for mitigating bullwhip effect in supply chain network," Annals of Operations Research, Springer, vol. 269(1), pages 361-386, October.
    9. Lee, Jun-Yeon & Cho, Richard K., 2014. "Contracting for vendor-managed inventory with consignment stock and stockout-cost sharing," International Journal of Production Economics, Elsevier, vol. 151(C), pages 158-173.
    10. Debashree Das & Avik Datta & Patanjal Kumar & Yigit Kazancoglu & Mangey Ram, 2022. "Building supply chain resilience in the era of COVID-19: An AHP-DEMATEL approach," Operations Management Research, Springer, vol. 15(1), pages 249-267, June.

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