Bullwhip Effect in Supply Chain for Perishable Product (A Systematic Literature Review)

Abstract

Bullwhip effect is the most feared phenomenon by the majority of companies because it leads to high operating costs. Bullwhip will also grow along with the increase in network tier or echelon of a distribution system. Bullwhip will become more severe when distributed products are fragile food products and have uncertain lead times and demand. In the systematic literature of this review, we will review the previous research on how to minimize the occurrence of the bullwhip effect. We also compared the differences and similarity models between common bullwhip mitigating models with bullwhip mitigating models for perishable products that have short life cycles. In further research, we will create optimal model to mitigate bullwhip, integrate the use of SCOR Framework to assess supply chain performance in food companies to minimize bullwhip effect. By using SCOR framework, we will be able to know the supply chain structure that is priority to be improved so that bullwhip on perishable product will decrease.1 Index Terms-bullwhip effect, cause bullwhip effect, variable of bullwhip effect, perishable product, systematic literature-review (SLR).

Development of Inventory Model to Reduce Total Inventory Costs at RSUD Mentawai

“…Perishable products have a direct impact on sales, prices, inventory levels and costs, while the cost considered is the expiration cost. Many studies consider various factors such as product characteristics, level of competition, internal and external constraints, price impact on demand, product availability, nature of demand and so on [7]. Based on the lifetime of perishable products, they are classified into two, namely fixed lifetime and random lifetime.…”