Analysis of bullwhip effect and the robustness of supply chain using a hybrid Taguchi and dual response surface method

Lina Tang, Taho Yang, Yizhong Ma, Jianjun Wang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The purpose of this paper is to quantify the effect of design parameters on the bullwhip effect and dynamic responses produced by a multi-echelon supply chain with different information-sharing strategies. An effective and efficient supply chain strategy should be capable of reducing costs and enhancing customer service level, and should be capable of enhancing the robustness of the supply chain. In this study, the robustness of different supply chain strategies under various uncertain environments is studied using simulated beer game. Firstly, discrete event simulation method is adopted to model supply chain with automatic pipeline inventory and order-based production control system (APIOPBCS). In order to deal with the non-linearity, such as capacity constraints, simulation experiments together with a hybrid Taguchi and dual-response surface method are performed to quantify the impact of a supply chain's design parameters on its dynamic performance. This research gives supply chain managers and designers a practical way to develop a trade-off between inventory cost and customer service level and to take better considerations about information-sharing strategies and bullwhip effect. Future work should develop a multi-response optimization towards robustness performances indicators of supply chain.

Original languageEnglish
Title of host publication14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings
EditorsXiaoqiang Cai, Jiafu Tang, Jian Chen
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781509063697
DOIs
Publication statusPublished - 2017 Jul 28
Event14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Dalian, China
Duration: 2017 Jun 162017 Jun 18

Publication series

Name14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings

Other

Other14th International Conference on Services Systems and Services Management, ICSSSM 2017
CountryChina
CityDalian
Period17-06-1617-06-18

Fingerprint

Bullwhip effect
Supply chain
Robustness
Response surface method
Information sharing
Service levels
Customer service
Supply chain strategy
Beer game
Supply chain design
Trade-offs
Dynamic response
Production control
Performance indicators
Managers
Capacity constraints
Nonlinearity
Multi-echelon
Inventory cost
Simulation methods

All Science Journal Classification (ASJC) codes

  • Management Science and Operations Research
  • Information Systems and Management
  • Strategy and Management

Cite this

Tang, L., Yang, T., Ma, Y., & Wang, J. (2017). Analysis of bullwhip effect and the robustness of supply chain using a hybrid Taguchi and dual response surface method. In X. Cai, J. Tang, & J. Chen (Eds.), 14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings [7996160] (14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/ICSSSM.2017.7996160
Tang, Lina ; Yang, Taho ; Ma, Yizhong ; Wang, Jianjun. / Analysis of bullwhip effect and the robustness of supply chain using a hybrid Taguchi and dual response surface method. 14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings. editor / Xiaoqiang Cai ; Jiafu Tang ; Jian Chen. Institute of Electrical and Electronics Engineers Inc., 2017. (14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings).
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Tang, L, Yang, T, Ma, Y & Wang, J 2017, Analysis of bullwhip effect and the robustness of supply chain using a hybrid Taguchi and dual response surface method. in X Cai, J Tang & J Chen (eds), 14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings., 7996160, 14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings, Institute of Electrical and Electronics Engineers Inc., 14th International Conference on Services Systems and Services Management, ICSSSM 2017, Dalian, China, 17-06-16. https://doi.org/10.1109/ICSSSM.2017.7996160

Analysis of bullwhip effect and the robustness of supply chain using a hybrid Taguchi and dual response surface method. / Tang, Lina; Yang, Taho; Ma, Yizhong; Wang, Jianjun.

14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings. ed. / Xiaoqiang Cai; Jiafu Tang; Jian Chen. Institute of Electrical and Electronics Engineers Inc., 2017. 7996160 (14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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N2 - The purpose of this paper is to quantify the effect of design parameters on the bullwhip effect and dynamic responses produced by a multi-echelon supply chain with different information-sharing strategies. An effective and efficient supply chain strategy should be capable of reducing costs and enhancing customer service level, and should be capable of enhancing the robustness of the supply chain. In this study, the robustness of different supply chain strategies under various uncertain environments is studied using simulated beer game. Firstly, discrete event simulation method is adopted to model supply chain with automatic pipeline inventory and order-based production control system (APIOPBCS). In order to deal with the non-linearity, such as capacity constraints, simulation experiments together with a hybrid Taguchi and dual-response surface method are performed to quantify the impact of a supply chain's design parameters on its dynamic performance. This research gives supply chain managers and designers a practical way to develop a trade-off between inventory cost and customer service level and to take better considerations about information-sharing strategies and bullwhip effect. Future work should develop a multi-response optimization towards robustness performances indicators of supply chain.

AB - The purpose of this paper is to quantify the effect of design parameters on the bullwhip effect and dynamic responses produced by a multi-echelon supply chain with different information-sharing strategies. An effective and efficient supply chain strategy should be capable of reducing costs and enhancing customer service level, and should be capable of enhancing the robustness of the supply chain. In this study, the robustness of different supply chain strategies under various uncertain environments is studied using simulated beer game. Firstly, discrete event simulation method is adopted to model supply chain with automatic pipeline inventory and order-based production control system (APIOPBCS). In order to deal with the non-linearity, such as capacity constraints, simulation experiments together with a hybrid Taguchi and dual-response surface method are performed to quantify the impact of a supply chain's design parameters on its dynamic performance. This research gives supply chain managers and designers a practical way to develop a trade-off between inventory cost and customer service level and to take better considerations about information-sharing strategies and bullwhip effect. Future work should develop a multi-response optimization towards robustness performances indicators of supply chain.

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M3 - Conference contribution

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Tang L, Yang T, Ma Y, Wang J. Analysis of bullwhip effect and the robustness of supply chain using a hybrid Taguchi and dual response surface method. In Cai X, Tang J, Chen J, editors, 14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings. Institute of Electrical and Electronics Engineers Inc. 2017. 7996160. (14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings). https://doi.org/10.1109/ICSSSM.2017.7996160