Comparative study of Bullwhip effect in Centralized and Decentralized supply chain of an FMCG industry

Prof. Mrs. Shivangi Viral Thakker

Abstract


The choice of supply chain strategy significantly impacts competitive performance of Business organizations.The purpose of this paper is to quantify and compare the bullwhip effects in centralized and decentralized supply chain of a Fast Moving Consumer Good (FMCG) industry.This paper aims to distinguish between two strategies of supply chain in terms of bullwhip effect present between the stages of each strategy. Bullwhip effects are quantified by simulation and validated by analytical method to study the variations in demands at different stages of supply chain.  Moving average forecasting method is used for simulations. The paper gives guidelines to managers in supply chain about the importance of selection of strategy for maximizing profit and reducing bullwhip effect. 


Full Text:

PDF

References


A.Y. Chang, H.F. Yu, T.H. Yang, (2013), ‘A study of the key factors contributing to the bullwhip effect in the supply chain of the retail industry’, Journal of Industrial and Production Engineering, vol. 30, n° 7, pp. 433–442.

Buchmeister, D. Friscic, I. Palcic, (2013), ‘Impact of demand changes and supply chain's level constraints on bullwhip effect’, International Journal on Advances in Production Engineering & Management, vol. 8, pp. 199-208.

C.A. Garcia Salcedo, A.I. Hernandez, R. Vilanova, J. H. Cuartas, (2013), ‘Inventory control of supply chains: Mitigating the bullwhip effect by centralized and decentralized Internal Model Control approaches’, European Journal of Operational Research, vol. 224, pp. 261-272.

Costantino, G.D. Gravio, A. Shaban, M. Tronci, (2013), ‘Exploring the bullwhip Effect and Inventory Stability in a Seasonal Supply Chain’, International Journal of Engineering Business Management, vol. 5, pp. 1-12.

D. Van Le, L. Trung Huynh, K. VasileClaudiu, M. Achim, ‘The impact of inventory sharing on the bullwhip effect in decentralized inventory systems’, Logist. Res., vol. 6, (2013), pp. 89–98.

H.L. Lee, V. Padmanabhan, S. Whang, (2004), ‘Comments on information distortion in a supply chain: The bullwhip effect: Reflections, Management Science, vol. 50, n° 12, pp. 1887-1893.

Li, S.M. Disney, G. Gaalman, (2013), ‘Avoiding the bullwhip effect using Damped Trend forecasting and the Order-Up-To replenishment policy’, International Journal Production Economics,

Lu, P. Humphreysa, R. McIvora, L. Maguireb, F. Wiengarten,(2012), ‘Applying genetic algorithms to dampen the impact of price fluctuations in a supply chain’, International Journal of Production Research, vol. 50,n° 19, pp. 5396–5414.

M. Hussain, P.R. Drake, D.M. Lee, (2012), ‘Quantifying the impact of a supply chain’s design parameters on the bullwhip effect using simulation and Taguchi design of experiments’, International Journal of Physical Distribution & Logistics Management, Vol. 42, n° 10, pp. 947-968.

M.A. Badar, S. Sammidi, L. Gardner, (2013), ‘Reducing the Bullwhip Effect in the Supply Chain: A Study of Different Ordering Strategies’, Journal of Technology Studies- Springer, vol. 39, pp52-63.

Nepal, A. Murat, R.B. Chinnam, (2012), ‘The bullwhip effect in capacitated supply chains with consideration for product life-cycle aspects’, International Journal of Production Economics, vol. 136, pp. 318-331.

Rahimzadeh, A. Haji, A.J. Makui, (2013), ‘Bullwhip Effect Measure When Supply Chain Demand is Forecasting’, Journal of Basic and Applied Scientific Research, vol. 2, , n° 4, pp. 4227-4232.

Y. Ma, N. Wang, A. Che, Y. Huang, J. Xu, (2013)a, ‘The bullwhip effect under different information-sharing settings: a perspective on price sensitive demand that incorporates price dynamics’, International Journal ofProduction Research, vol. 51, n° 10, pp.3085–3116.

Y. Wei, H. Wang, C. Qi, (2013), ‘On the stability and bullwhip effect of a production and inventory control system’, International Journal ofProduction Research, vol. 51, n° 1, pp. 154

Zotteri, (2013), ‘An empirical investigation on causes and effects of the Bullwhip effect: Evidence from the personal care sector’, International Journal Production Economics, vol. 143, pp. 489-498.


Refbacks

  • There are currently no refbacks.