“…By adopting this assumption, we implement a more reliable modelling assumption for the bullwhip effect analysis. In fact, as recently shown by Chatfield and Pritchard (2013) and Dominguez et al (2015) models that allow product returns may result in an overestimation of the bullwhip effect. 6.…”
Section: Clsc Modelmentioning
confidence: 85%
“…This latter approach can be viewed as a 'crash test' or a 'stress test': studying the system performance under an intense (Dominguez et al, 2015). In our case, attending to the variance lens perspective, we choose to set a stationary demand pattern to simulate a very stable system, i.e., N $(100, 10 2 ).…”
Section: Experimental Design and Numerical Resultsmentioning
“…By adopting this assumption, we implement a more reliable modelling assumption for the bullwhip effect analysis. In fact, as recently shown by Chatfield and Pritchard (2013) and Dominguez et al (2015) models that allow product returns may result in an overestimation of the bullwhip effect. 6.…”
Section: Clsc Modelmentioning
confidence: 85%
“…This latter approach can be viewed as a 'crash test' or a 'stress test': studying the system performance under an intense (Dominguez et al, 2015). In our case, attending to the variance lens perspective, we choose to set a stationary demand pattern to simulate a very stable system, i.e., N $(100, 10 2 ).…”
Section: Experimental Design and Numerical Resultsmentioning
“…Dominguez et al, 2014 andDominguez et al, 2015) show how different SCN configurations with the same number of echelons may have different SCN performances. Thus, there is a need to assess the impact of all SCNs structural factors on performance.…”
Please cite this article as: R. Dominguez, S. Cannella, J.M. Framinan, The impact of the supply chain structure on bullwhip effect, Appl. Math. Modelling (2015), doi: http://dx.
“…Such a destructive effect occurs when an end customer places an order, and its order is amplified as it moves through the chain. Dominguez et al [3] studied the effect of supply chain network (SCN) configuration and returns of goods on BWE. They showed that returning goods increases BWE in serial SCN more than divergent configuration.…”
The purpose of this paper is to mitigate bullwhip effect (BWE) in a supply chain (SC). Four main contributions are proposed. The first one is to reduce BWE through considering its multiple causes (demand, pricing, ordering, and lead time) simultaneously. The second one is to model demands, orders, and prices dynamically for reducing BWE.Demand and prices have mutual effect on each other dynamically over time. In other words, a time series model is used in a game theory method for finding the optimal prices in an SC. Moreover, the optimal prices are inserted into the time series model for forecasting price sensitive demands and orders in an SC. The third one is to use demand of each entity for forecasting its orders. This leads to drastic reduction in BWE and mean square error (MSE) of the model. The fourth contribution is to use optimal prices instead of forecasted ones for demand forecasting and reducing BWE. Finally, a numerical experiment for the auto parts SC is developed. The results show that analysing joint demand, orders, lead time, and pricing model with calculating the optimal values of prices and lead times leads to the significant reduction in BWE.
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