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The analysis of bullwhip effect in a HMMS-type supply chain

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  • Dobos, Imre

Abstract

The aim of the paper is to investigate the well-known bullwhip effect of supply chains. Control theoretic analysis of bullwhip effect is extensively analyzed in the literature with the Laplace transform. This paper tries to examine the effect for an extended Holt-Modigliani-Muth-Simon model. A two-stage supply chain (supplier-manufacturer) is studied with quadratic costs functional. It is assumed that both firms minimize the relevant costs. The order of the manufacturer is delayed with a known constant. Two cases are examined: supplier and manufacturer minimize the relevant costs decentralized, and a centralized decision rule. The question is answered, how to decrease the bullwhip effect.

Suggested Citation

  • Dobos, Imre, 2011. "The analysis of bullwhip effect in a HMMS-type supply chain," International Journal of Production Economics, Elsevier, vol. 131(1), pages 250-256, May.
  • Handle: RePEc:eee:proeco:v:131:y:2011:i:1:p:250-256
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    References listed on IDEAS

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    1. Dobos, Imre, 2003. "Optimal production-inventory strategies for a HMMS-type reverse logistics system," International Journal of Production Economics, Elsevier, vol. 81(1), pages 351-360, January.
    2. Geary, S. & Disney, S.M. & Towill, D.R., 2006. "On bullwhip in supply chains--historical review, present practice and expected future impact," International Journal of Production Economics, Elsevier, vol. 101(1), pages 2-18, May.
    3. Nyoman Pujawan, I, 2004. "The effect of lot sizing rules on order variability," European Journal of Operational Research, Elsevier, vol. 159(3), pages 617-635, December.
    4. Dobos, Imre, 1998. "Production-inventory control under environmental constraints," International Journal of Production Economics, Elsevier, vol. 56(1), pages 123-131, September.
    5. Gérard P. Cachon, 1999. "Managing Supply Chain Demand Variability with Scheduled Ordering Policies," Management Science, INFORMS, vol. 45(6), pages 843-856, June.
    6. Disney, S. M. & Towill, D. R., 2003. "On the bullwhip and inventory variance produced by an ordering policy," Omega, Elsevier, vol. 31(3), pages 157-167, June.
    7. Zhou, Li & Disney, Stephen & Towill, Denis R., 2010. "A pragmatic approach to the design of bullwhip controllers," International Journal of Production Economics, Elsevier, vol. 128(2), pages 556-568, December.
    8. Machuca, José A. D. & Barajas, Rafael P., 2004. "The impact of electronic data interchange on reducing bullwhip effect and supply chain inventory costs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(3), pages 209-228, May.
    9. Dejonckheere, J. & Disney, S. M. & Lambrecht, M. R. & Towill, D. R., 2003. "Measuring and avoiding the bullwhip effect: A control theoretic approach," European Journal of Operational Research, Elsevier, vol. 147(3), pages 567-590, June.
    10. Towill, Denis R. & Zhou, Li & Disney, Stephen M., 2007. "Reducing the bullwhip effect: Looking through the appropriate lens," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 444-453, July.
    11. Zhou, Li & Naim, Mohamed M. & Ou Tang & Towill, Denis R., 2006. "Dynamic performance of a hybrid inventory system with a Kanban policy in remanufacturing process," Omega, Elsevier, vol. 34(6), pages 585-598, December.
    12. Frank Chen & Zvi Drezner & Jennifer K. Ryan & David Simchi-Levi, 2000. "Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information," Management Science, INFORMS, vol. 46(3), pages 436-443, March.
    13. Kelle, Peter & Milne, Alistair, 1999. "The effect of (s, S) ordering policy on the supply chain," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 113-122, March.
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    Cited by:

    1. K. Devika & A. Jafarian & A. Hassanzadeh & R. Khodaverdi, 2016. "Optimizing of bullwhip effect and net stock amplification in three-echelon supply chains using evolutionary multi-objective metaheuristics," Annals of Operations Research, Springer, vol. 242(2), pages 457-487, July.

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