Risk analysis for cooperation policies benefits in reducing the bullwhip effect in a telecom supply chain
by Caroline Thierry; Jaouher Mahmoudi; Jacques Lamothe
International Journal of Simulation and Process Modelling (IJSPM), Vol. 6, No. 3, 2011

Abstract: Supply chain demand is often prone to fluctuations and instability. Known as the 'bullwhip effect', small variations in end-item demand create order and inventory oscillations that amplify from a downstream site to an upstream site. Applying a risk analysis approach, and assuming the bullwhip phenomenon as a constant reality, this paper will present the profits or losses that can accrue from various cooperation policies. The latter are based on planning, information sharing and stock-adjustment strategies adopted by the supply chain actors. The system considered for this research is a four-stage supply chain. To allow risk measures and analysis, a specific discrete-event-simulation system was developed.

Online publication date: Fri, 06-Jan-2012

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