Title: Information Sharing to Reduce Fluctuations in Supply Chains: A Dynamic Feedback Approach
Abstract: Supply chain inventories are prone to fluctuations and instability. Small variations in end item demand create oscillations that amplify throughout the chain, also known as bullwhip effect. In this research we try to understand the underlying structure that generates bullwhip effect, and try to explore the effect information sharing on this behavior by using dynamic system simulation. Analysis shows that (i) one of the root causes of bullwhip effect is independent demand forecasting performed at each stage of the supply chain and (ii) demand sharing can reduce but not eliminate the bullwhip effect.
Publication Year: 2000
Publication Date: 2000-01-01
Language: en
Type: article
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Cited By Count: 2
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