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On the Bullwhip Avoidance Phase: The Synchronised Supply Chain

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  • Ciancimino, Elena
  • Cannella, Salvatore
  • Bruccoleri, Manfredi
  • Framinan, Jose M.

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.

Suggested Citation

  • Ciancimino, Elena & Cannella, Salvatore & Bruccoleri, Manfredi & Framinan, Jose M., 2012. "On the Bullwhip Avoidance Phase: The Synchronised Supply Chain," European Journal of Operational Research, Elsevier, vol. 221(1), pages 49-63.
  • Handle: RePEc:eee:ejores:v:221:y:2012:i:1:p:49-63
    DOI: 10.1016/j.ejor.2012.02.039
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