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The analysis of bullwhip effect in a HMMS-type supply chain

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  • Dobos, Imre

Abstract

The aim of the paper is to investigate the well-known bullwhip effect of supply chains. Control theoretic analysis of bullwhip effect is extensively analyzed in the literature with the Laplace transform. This paper tries to examine the effect for an extended Holt-Modigliani-Muth-Simon model. A two-stage supply chain (supplier-manufacturer) is studied with quadratic costs functional. It is assumed that both firms minimize the relevant costs. The order of the manufacturer is delayed with a known constant. Two cases are examined: supplier and manufacturer minimize the relevant costs decentralized, and a centralized decision rule. The question is answered, how to decrease the bullwhip effect.

Suggested Citation

  • Dobos, Imre, 2011. "The analysis of bullwhip effect in a HMMS-type supply chain," International Journal of Production Economics, Elsevier, vol. 131(1), pages 250-256, May.
    • Handle: RePEc:eee:proeco:v:131:y:2011:i:1:p:250-256
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    References listed on IDEAS

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    1. Dobos, Imre, 2003. "Optimal production-inventory strategies for a HMMS-type reverse logistics system," International Journal of Production Economics, Elsevier, vol. 81(1), pages 351-360, January.
    2. Zhou, Li & Disney, Stephen & Towill, Denis R., 2010. "A pragmatic approach to the design of bullwhip controllers," International Journal of Production Economics, Elsevier, vol. 128(2), pages 556-568, December.
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    4. Machuca, José A. D. & Barajas, Rafael P., 2004. "The impact of electronic data interchange on reducing bullwhip effect and supply chain inventory costs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(3), pages 209-228, May.
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    10. Dobos, Imre, 1998. "Production-inventory control under environmental constraints," International Journal of Production Economics, Elsevier, vol. 56(1), pages 123-131, September.
    11. Gérard P. Cachon, 1999. "Managing Supply Chain Demand Variability with Scheduled Ordering Policies," Management Science, INFORMS, vol. 45(6), pages 843-856, June.
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