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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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