Bullwhip effect consequences according to different supply chain management strategies: Modelling and simulation

Journal ar
Revista de Metodos Cuantitativos para la Economia y la Empresa
  • Volumen: 5
  • Fecha: 18 August 2008
  • Páginas: 49-66
  • ISSN: 1886516X
  • Source Type: Journal
  • Document Type: Article
The Bullwhip effect is one of the main causes of instability in the management demand process along the Supply Chain. We introduce a model which is able to reproduce different Supply Chain Management Scenarios within a determinate Supply Chain with whichever the levels of this one. The model has been built using Systems Dynamics Methodology and incorporates the main variables which axe required for simulating the Management Demand Process (Inventory levels, Replenishment orders, manufacturing process, forecasting etc.). This paper demonstrates the utility of the proposed model comparing the results offered by two different scenarios namely Traditional supply chain and Reduced supply chain.

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