Issues on the reduction of demand variance in the supply chain

C. Lin, Y. T. Lin

Research output: Contribution to journalArticlepeer-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 languageEnglish
Pages (from-to)1821-1843
Number of pages23
JournalInternational Journal of Production Research
Volume44
Issue number9
DOIs
Publication statusPublished - 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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