Some Properties of Decentralized Supply Chains

Yanfeng Ouyang and Carlos F. Daganzo

Institute of Transportation Studies, Research Reports, Working Papers, Proceedings from Institute of Transportation Studies, UC Berkeley

Abstract: This paper analyzes the bullwhip effect in decentralized, linear and time-invariant (LTI) supply chains. It generalizes existing results by broadening the class of policies and customer demand processes under consideration. The supply chain is modeled as a single-input, singleoutput control system driven by arbitrary demands. The paper discusses the appropriateness of various metrics for the bullwhip effect, and derives analytical conditions to predict its presence independently of the demand process. The paper also gives a formula for the variance of the order stream at any stage when the demand process is known and ergodic. Advance demand information (ADI) is shown to mitigate the bullwhip effect for general ordering policies.

Keywords: Logistics (search for similar items in EconPapers)
Date: 2005-04-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.escholarship.org/uc/item/5qt7g4tv.pdf;origin=repeccitec (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cdl:itsrrp:qt5qt7g4tv

Access Statistics for this paper

More papers in Institute of Transportation Studies, Research Reports, Working Papers, Proceedings from Institute of Transportation Studies, UC Berkeley Contact information at EDIRC.
Bibliographic data for series maintained by Lisa Schiff ().