Abstract: The bullwhip effect is a costly supply chain phenomenon. We assume bullwhip related costs consist of lost capacity and over-time costs. We develop an easy to use design method to tune replenishment decisions in the face both of inventory and bullwhip related costs. To illustrate our method we investigate the value of a lead-time reduction in terms of inventory and capacity costs. We also investigate the economic impact of a common control theory modification to the Order-Up-To policy
Publication Year: 2006
Publication Date: 2006-01-01
Language: en
Type: article
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Cited By Count: 3
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