On the Bullwhip Avoidance Phase: The Synchronised Supply Chain |
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| Authors: | Elena Ciancimino Salvatore Cannella Manfredi Bruccoleri Jose M. Framinan |
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| Affiliation: | 1. Department of Chemical, Management, Mechanical Engineering and Computer Science, University of Palermo, Palermo, Italy;2. Centre for Management Studies, Instituto Superior Técnico, Technical University of Lisbon, Porto Salvo, Portugal;3. Industrial Management, School of Engineering, University of Seville, Seville, Spain |
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| Abstract: | The aim of this paper is to analyse the operational response of a Synchronised Supply Chain (SSC). To do so, first a new mathematical model of a SSC is presented. An exhaustive Latin Square design of experiments is adopted in order to perform a boundary variation analysis of the main three parameters of the periodic review smoothing (S, R) order-up-to policy: i.e., lead time, demand smoothing forecasting factor, and proportional controller of the replenishment rule. The model is then evaluated under a variety of performance measures based on internal process benefits and customer benefits. The main results of the analysis are: (I) SSC responds to violent changes in demand by resolving bullwhip effect and by creating stability in inventories under different parameter settings and (II) in a SSC, long production–distribution lead times could significantly affect customer service level. Both results have important consequences for the design and operation of supply chains. |
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| Keywords: | Inventory Supply chain management Simulation Collaboration Information sharing |
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