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Digital Library of the
European Council for Modelling and Simulation |
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Title: |
Dynamic
Behavior Of Supply Chains |
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Authors: |
Hans-Peter Barbey |
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Published in:
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(2013).ECMS 2013 Proceedings edited
by: W. Rekdalsbakken, R. T. Bye, H.
Zhang European Council for Modeling and Simulation. doi:10.7148/2013 ISBN:
978-0-9564944-6-7 27th
European Conference on Modelling and Simulation, Aalesund,
Norway, May 27th – 30th,
2013 |
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Citation
format: |
Hans-Peter
Barbey (2013). Dynamic Behavior Of Supply Chains,
ECMS 2013 Proceedings edited by: W. Rekdalsbakken, R. T. Bye, H. Zhang, European Council for Modeling
and Simulation. doi:10.7148/2013-0748 |
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DOI: |
http://dx.doi.org/10.7148/2013-0748 |
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Abstract: |
The bullwhip effect has been well known
since many years and often takes place in supply chains. It is caused by
wrong order policy in real systems. The bullwhip effect can be demonstrated
easily through the beer game. It was developed by the MIT in the 60s. All stages
of the supply chain operate independently. The only decisions that can be
taken in the particular stages of this simulation game are the size of the
orders. This beer game was depicted as a simulation with two additional
simple control algorithms for the decision of the order quantities. The first
algorithm set the time to compensate a difference in the inventory to a
specific value, in the second algorithm the quantity
of the order is limited. Both algorithms were taken to compensate a sudden
and steady increase of the orders. Both control algorithms generated a
bullwhip effect. The limited duration strategy for compensation a difference
in the inventory led to rising orders in the upstream stages. The limited
order strategy led to an increasing time to compensate a difference in the
inventories of the upstream stages. The limited duration
strategy was applied to an ordering behavior with a linear trend und to a
random ordering behavior. For the linear trend it has been found that the shorter
the time for compensation the lower the difference to the nominal stock and
the higher the bullwhip effect in the stages upstream. In contrast to that
for random orders the time for compensation has to be longer to minimize the
bullwhip effect. That is why the setting of the closed-loop control of the
stocks in supply chains is an optimization problem. It can only be solved for
a real supply chain, if the ordering behavior of the customer is known. |
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