Study of the Bullwhip Effect in a Multistage Supply Chain with Callback Structure considering Two Retailers

With the purpose of researching the bullwhip effect when there is a callback center in the supply chain system, this paper establishes a new supply chain model with callback structure, which has a material supplier, a manufacture, and two retailers. The manufacture and retailers all employ AR(1) dem...

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Published inComplexity (New York, N.Y.) Vol. 2018; no. 2018; pp. 1 - 12
Main Authors Hou, Shunqi, Yuan, Ye, Zhu, Liqing, Ma, Junhai
Format Journal Article
LanguageEnglish
Published Cairo, Egypt Hindawi Publishing Corporation 01.01.2018
Hindawi
John Wiley & Sons, Inc
Wiley
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Abstract With the purpose of researching the bullwhip effect when there is a callback center in the supply chain system, this paper establishes a new supply chain model with callback structure, which has a material supplier, a manufacture, and two retailers. The manufacture and retailers all employ AR(1) demand processes and use order-up-to inventory policy when they make order decisions. Moving average forecasting method is used to measure the bullwhip effect of each retailer and manufacture. We investigate the impact of lead-times of retailers and manufacture, forecasting precision, callback index, and marketing share on the bullwhip effect of both retailers and manufacture. Then we use the method of numerical simulation to indicate the different parameters in this supply chain. Furthermore, this paper puts forward some suggestions to help the enterprises to control the bullwhip effect in the supply chain with callback structure.
AbstractList With the purpose of researching the bullwhip effect when there is a callback center in the supply chain system, this paper establishes a new supply chain model with callback structure, which has a material supplier, a manufacture, and two retailers. The manufacture and retailers all employ AR(1) demand processes and use order-up-to inventory policy when they make order decisions. Moving average forecasting method is used to measure the bullwhip effect of each retailer and manufacture. We investigate the impact of lead-times of retailers and manufacture, forecasting precision, callback index, and marketing share on the bullwhip effect of both retailers and manufacture. Then we use the method of numerical simulation to indicate the different parameters in this supply chain. Furthermore, this paper puts forward some suggestions to help the enterprises to control the bullwhip effect in the supply chain with callback structure.
Audience Academic
Author Zhu, Liqing
Yuan, Ye
Hou, Shunqi
Ma, Junhai
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Copyright Copyright © 2018 Junhai Ma et al.
COPYRIGHT 2018 John Wiley & Sons, Inc.
Copyright © 2018 Junhai Ma et al.; This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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SubjectTerms Air conditioning
Analysis
Computer simulation
Forecasting
Information sharing
Inventory
Inventory control
Inventory management
Logistics
Manufacturers
Mathematical models
Retail industry
Retail stores
Suppliers
Supply chains
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Title Study of the Bullwhip Effect in a Multistage Supply Chain with Callback Structure considering Two Retailers
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