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Effects of Wholesale Competition in Supply Chains: An Analysis with Heterogeneous Decision-Makers

In: Decision-making in Humanitarian Operations

Author

Listed:
  • Yuly Arboleda

    (Universidad Nacional de Colombia, Faculty of Mines)

  • Santiago Arango-Aramburo

    (Universidad Nacional de Colombia, Faculty of Mines)

Abstract

One of the most frequent and costly problems in supply chains is known as the Bullwhip Effect, where order fluctuation amplifies as orders move higher up the supply chain. A small variation in final customer demand causes the supplier’s production to fluctuate at the other end of the chain. In this chapter, we analyze the Bullwhip Effect when competition is included at a wholesale level, considering the heterogeneity in decision rules from Agent-Based Simulation, System Dynamics, and Economic Experiments. Thereafter, the supplier invests in their capacity to complete the orders. Our results show that customers tend to inflate their orders when faced with exhausted products and different delays in the system.

Suggested Citation

  • Yuly Arboleda & Santiago Arango-Aramburo, 2019. "Effects of Wholesale Competition in Supply Chains: An Analysis with Heterogeneous Decision-Makers," Springer Books, in: Sebastián Villa & Gloria Urrea & Jaime Andrés Castañeda & Erik R. Larsen (ed.), Decision-making in Humanitarian Operations, chapter 13, pages 291-312, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-91509-8_13
    DOI: 10.1007/978-3-319-91509-8_13
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