Issues on the reduction of demand variance in the supply chain

C. Lin; Y. T. Lin

doi:10.1080/00207540500372012

Issues on the reduction of demand variance in the supply chain

C. Lin, Y. T. Lin

Research output: Contribution to journal › Article › peer-review

7 Citations (Scopus)

Abstract

To streamline an agile manufacturing system of a global firm facing a high demand of market service, supply chain management (SCM) plays an important role. In SCM, a phenomenon called 'the bullwhip effect has attracted considerable attention. This study examines the bullwhip effect caused by order variance from retailers. It shows that based on portfolio theory, supplier's demand variance can be reduced by adjusting the order quantities of retailers through co-ordination. The results indicate that our approach can be a useful means for alleviating the bullwhip effect.

Original language	English
Pages (from-to)	1821-1843
Number of pages	23
Journal	International Journal of Production Research
Volume	44
Issue number	9
DOIs	https://doi.org/10.1080/00207540500372012
Publication status	Published - 2006 May 1

All Science Journal Classification (ASJC) codes

Strategy and Management
Management Science and Operations Research
Industrial and Manufacturing Engineering

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10.1080/00207540500372012

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abstract = "To streamline an agile manufacturing system of a global firm facing a high demand of market service, supply chain management (SCM) plays an important role. In SCM, a phenomenon called 'the bullwhip effect has attracted considerable attention. This study examines the bullwhip effect caused by order variance from retailers. It shows that based on portfolio theory, supplier's demand variance can be reduced by adjusting the order quantities of retailers through co-ordination. The results indicate that our approach can be a useful means for alleviating the bullwhip effect.",

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note = "Funding Information: This study was partly funded by a grant from the National Science Council, Taiwan, Republic of China (NSC-91-2416-H-006-028). The authors are grateful to the anonymous referees for their valuable comments, which greatly improved the quality and the presentation of this paper.",

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AB - To streamline an agile manufacturing system of a global firm facing a high demand of market service, supply chain management (SCM) plays an important role. In SCM, a phenomenon called 'the bullwhip effect has attracted considerable attention. This study examines the bullwhip effect caused by order variance from retailers. It shows that based on portfolio theory, supplier's demand variance can be reduced by adjusting the order quantities of retailers through co-ordination. The results indicate that our approach can be a useful means for alleviating the bullwhip effect.

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