IDEAS home Printed from https://ideas.repec.org/p/iik/wpaper/64.html
   My bibliography  Save this paper

Measuring Demand Amplification In A Closed Loop Supply Chain

Author

Listed:
  • Rupesh Kumar Pati

    (Indian Institute of Management Kozhikode)

  • Prem Vrat

    (Nil)

  • Pradeep Kumar

    (Nil)

Abstract

The issue of sustainability has attracted attention towards closing the traditional supply chain through different reprocessing options. This paper develops an analytical expression for measuring the bullwhip effect in a six echelon closed loop supply chain for recycling of products like paper, plastic. A first order auto regressive end customer demand is assumed with each supply chain participant employing an order-up-to (OUT) policy and Minimum Mean Square Error (MMSE) forecasting scheme. The model assists the closed loop supply chain entities in anticipating the downstream demand and suggests them to carefully select the value of auto regressive parameter so as to avoid any orderprocess instability in the closed loop supply chain. Sensitivity analysis of replenishment lead-time combination could be utilized by management for designing an optimal recycling-distribution system, under the condition of constant accumulated lead-time. Further, the segregation analysis reveals that increase in the degree of segregation at the source reduces the bullwhip effect in the closed loop supply chain.

Suggested Citation

  • Rupesh Kumar Pati & Prem Vrat & Pradeep Kumar, 2010. "Measuring Demand Amplification In A Closed Loop Supply Chain," Working papers 64, Indian Institute of Management Kozhikode.
    • Handle: RePEc:iik:wpaper:64
    as

    Download full text from publisher

    File URL: https://iimk.ac.in/websiteadmin/FacultyPublications/Working%20Papers/64fullp.pdf?t=31
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iik:wpaper:64. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sudheesh Kumar (email available below). General contact details of provider: https://edirc.repec.org/data/iikmmin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.