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Digital Library of the
European Council for Modelling and Simulation |
Title: |
Dynamic
Behaviour Of Supply Chains |
Authors: |
Hans-Peter Barbey |
Published in: |
(2012).ECMS
2012 Proceedings edited by: K. G. Troitzsch, M. Moehring, U. Lotzmann. European
Council for Modeling and Simulation. doi:10.7148/2012 ISBN:
978-0-9564944-4-3 26th
European Conference on Modelling and Simulation, Shaping reality through simulation Koblenz,
Germany, May 29 – June 1 2012 |
Citation
format: |
Barbey, H.-P.
(2012). Dynamic Behaviour Of Supply Chains. ECMS
2012 Proceedings edited by: K. G. Troitzsch, M. Moehring, U. Lotzmann
(pp. 556-559). European Council for Modeling and Simulation. doi:10.7148/2012-0556-0559 |
DOI: |
http://dx.doi.org/10.7148/2012-0556-0559 |
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 a discrete event simulation. It is possible with the
application of a Smith-predictor and the limitation of the production rate to
eliminate the bullwhip effect in simulations. The difference that it makes on
nominal stock can be equalized in a rather short period. With a suitable set
of parameters, the oscillation of the stocks of each company, upstream in the
supply chain, is nothing more than a variation of the customer’s orders at
the end of the supply chain. Anyhow, it takes a longer period to compensate
the stock differences of the companies upstream. If we deal with a total
random order policy, the Smith-predictor can avoid the bullwhip effect, even
the variation of stock in the upstream companies is lower than the variation at
the end of the supply chain. With application of the Smith-predictor, the
companies can equalize their stocks independently. |
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