Mitigating the bullwhip effect by reducing demand variance in the supply chain

Chinho Lin, Yu Te Lin

Research output: Contribution to journalArticle

13 Citations (Scopus)

Abstract

To coordinate an agile manufacturing system with the high-level requirements of marketing services, supply chain management (SCM) plays an important role in management activities for enterprise globalization. In SCM, a phenomenon called the "bullwhip effect" has attracted considerable attention. Beyond the previous studies, we consider multiple retailers with one supplier in the supply chain and examine ways in which the supplier can reduce the total demand variance by adjusting retailers' order sizes. The results reveal that the total demand variance can be reduced by using portfolio theory to adjust the order sizes based on the variance of order of the retailer. Therefore, the bullwhip effect can be partially reduced by our proposed method .

Original languageEnglish
Pages (from-to)328-336
Number of pages9
JournalInternational Journal of Advanced Manufacturing Technology
Volume28
Issue number3-4
DOIs
Publication statusPublished - 2006 Mar 1

All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering
  • Software
  • Mechanical Engineering
  • Computer Science Applications
  • Industrial and Manufacturing Engineering

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