On the Bullwhip Avoidance Phase: The Synchronised Supply Chain

Elena Ciancimino, Salvatore Cannella, Manfredi Bruccoleri and Jose M. Framinan

European Journal of Operational Research, 2012, vol. 221, issue 1, 49-63

Abstract: The aim of this paper is to analyse the operational response of a Synchronised Supply Chain (SSC). To do so, first a new mathematical model of a SSC is presented. An exhaustive Latin Square design of experiments is adopted in order to perform a boundary variation analysis of the main three parameters of the periodic review smoothing (S,R) order-up-to policy: i.e., lead time, demand smoothing forecasting factor, and proportional controller of the replenishment rule. The model is then evaluated under a variety of performance measures based on internal process benefits and customer benefits. The main results of the analysis are: (I) SSC responds to violent changes in demand by resolving bullwhip effect and by creating stability in inventories under different parameter settings and (II) in a SSC, long production–distribution lead times could significantly affect customer service level. Both results have important consequences for the design and operation of supply chains.

Keywords: Inventory; Supply chain management; Simulation; Collaboration; Information sharing (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:221:y:2012:i:1:p:49-63

DOI: 10.1016/j.ejor.2012.02.039

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