Flexibility and Amplification Measures in a Supply Chain Model

Pereira, Javier; Ahumada, L.; Paredes, Fernando

doi:10.1109/icc.2008.1033

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Flexibility Dimensions Trade-off1

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2009

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“…In recent work (Pereira et al 2008), we have found an analytical relation between the amplification and the adjustment degree, showing that the amplification acceptability condition introduced by Muramatsu is satisfied when a flexibility condition is fullfilled. A strong condition has been found, which allows us to show that the supply-chain manager is enabled to increase or decrease the ordering responsiveness, measured by lead time, always respecting the amplification criteria.…”

Section: Flexibility Dimensions Trade-offmentioning

confidence: 93%

Flexibility dimensions to control the bullwhip effect in a supply chain

Pereira

Takahashi

Ahumada

et al. 2009

International Journal of Production Research

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In this paper, we analyse the consequences of two flexibility dimensions proposed in a previous approach-adjustment capability and responsiveness-on the bullwhip effect in a supply-chain model when a stochastic AR(1) demand process is considered. First modelling the manager's belief on forecasting in pull, push and hybrid ordering methods, it is revealed that high adjustment capability induces a robust reduction of the bullwhip effect. Secondly, it is found that maximal responsiveness is not always a necessary management strategy. Indeed, we show that these dimensions may be organised in a trade-off, always keeping amplification to acceptable values in the whole supply chain.

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Section: Flexibility Dimensions Trade-offmentioning

confidence: 93%