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Measuring the bullwhip effect for supply chains with seasonal demand components

Author

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  • Nagaraja, C.H.
  • Thavaneswaran, A.
  • Appadoo, S.S.

Abstract

A bullwhip measure for a two-stage supply chain with an order-up-to inventory policy is derived for a general, stationary SARMA(p, q) × (P, Q)s demand process. Explicit expressions for several SARMA models are obtained to illustrate the key relationship between lead-time and seasonal lag. It is found that the bullwhip effect can be reduced considerably by shortening the lead-time in relation to the seasonal lag value.

Suggested Citation

  • Nagaraja, C.H. & Thavaneswaran, A. & Appadoo, S.S., 2015. "Measuring the bullwhip effect for supply chains with seasonal demand components," European Journal of Operational Research, Elsevier, vol. 242(2), pages 445-454.
    • Handle: RePEc:eee:ejores:v:242:y:2015:i:2:p:445-454
    DOI: 10.1016/j.ejor.2014.10.022
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    References listed on IDEAS

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    3. Kvamsdal, Sturla F. & Maroto, José M. & Morán, Manuel & Sandal, Leif K., 2020. "Bioeconomic modeling of seasonal fisheries," European Journal of Operational Research, Elsevier, vol. 281(2), pages 332-340.
    4. Sinha, Priyank & Kumar, Sameer & Prakash, Surya, 2020. "Measuring and mitigating the effects of cost disturbance propagation in multi-echelon apparel supply chains," European Journal of Operational Research, Elsevier, vol. 282(1), pages 148-160.
    5. Sabitha, Devarajulu & Rajendran, Chandrasekharan & Kalpakam, S. & Ziegler, Hans, 2016. "The value of information sharing in a serial supply chain with AR(1) demand and non-zero replenishment lead times," European Journal of Operational Research, Elsevier, vol. 255(3), pages 758-777.
    6. Junhai Ma & Jing Zhang & Liqing Zhu, 2018. "Study of the Bullwhip Effect under Various Forecasting Methods in Electronics Supply Chain with Dual Retailers considering Market Share," Complexity, Hindawi, vol. 2018, pages 1-19, January.
    7. Wang, Xun & Disney, Stephen M., 2017. "Mitigating variance amplification under stochastic lead-time: The proportional control approach," European Journal of Operational Research, Elsevier, vol. 256(1), pages 151-162.

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