A measure of the bullwhip effect in supply chains with stochastic lead time
Source: The International Journal of Advanced Manufacturing Technology, Volume 38, Numbers 11-12, October 2008 , pp. 1201-1212(12)
Abstract:In this paper, we exactly quantify the bullwhip effect, the variance amplification in replenishment orders, for cases of stochastic demand and stochastic lead time in a simple two-stage supply chain with one supplier and one retailer. In most of the previous research, the impact of order lead time on the bullwhip effect in supply chains with pre-specified demand processes is investigated mostly for cases of deterministic lead time. In this paper, we deal with a first-order autoregressive, AR(1), demand process and investigate the behavior of a measure for the bullwhip effect with respect to autoregressive coefficient and stochastic order lead time. Extension to a mixed first-order autoregressive-moving average, ARMA(1,1), demand process is also considered.
Document Type: Research Article
Affiliations: 1: Department of Industrial Engineering, Korea Advanced Institute of Science and Technology, Yuseong-gu, Daejeon, 305-701, South Korea, Email: firstname.lastname@example.org 2: Industrial Systems Engineering Program, School of Engineering and Technology, Asian Institute of Technology, P.O. Box 4, Klong Luang, Pathumthani, 12120, Thailand 3: Department of Industrial Engineering, Korea Advanced Institute of Science and Technology, Yuseong-gu, Daejeon, 305-701, South Korea
Publication date: October 1, 2008