Measurement of the whip effect in supply networking
DOI:
https://doi.org/10.18041/1909-2458/ingeniare.20.406Abstract
The variability of demand originated from one agent to another in the supply chain increases or amplifies as the signal moves away from the point of origin; these distortions are called the Whip Effect. This paper addresses a network of multislot supplies, which estimates demand measurement intervals of the network distortion, according to extreme behaviors in the system that allow to diagnose its performance regarding the amplification of the demand. For the research, local and global static measurements of the whip effect are applied at each level of the four-stage beer game supply network; each step or link has multiple nodes. Traditionally, this measurement has been performed at one node at a time, or in the case of global measurements, a single node is assumed at each link in the system. The measurement in this study is made to a non-linear supply network, in which, unlike previous cases, we have two or more nodes per link, which represents an advance in the measurement of the whip effect in systems of greater complexity
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References
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A. Hassanzadeh, A. Jafarian and M. Amiri, “Modeling and Analysis of the Causes of Bullwhip Effect in Centralized and Decentralized Supply Chain Using Response Surface Method”, Applied Mathematical Modelling, Vol. 38, n° 9, 2014, pp. 2353-2365.
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G. P. Cachon, T. Randall, and G. M. Schmidt, “In Search of the Bullwhip Effect”, Manufacturing & Service Operations Management, Vol. 9, n° 4, 2009, pp. 457-479.
R. Metters, “Quantifying the Bullwhip Effect in Supply Chains”, Journal of Operations Management, Vol. 15, n° 2, 1997, pp. 89-100.
L. Chen, and H. L. Lee, “Bullwhip Effect Measurement and its Implications”, Operations Research, Vol. 60, n° 4, 2012, pp. 771-784.
F. Chen, Z. Drezner, J. K. Ryan, and D. Simchi-Levi, “Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information”, Management Science, Vol. 46, n° 3, 2000, pp. 436-443.
J. G. Kim, D, Chatfield,T. P. Harrison, and J. C. Hayya, “Quantifying the Bullwhip Effect in a Supply Chain with Stochastic Lead Time”, European Journal of Operational Research, Vol. 173, n° 2, 2006, pp. 617-636.
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J. Dejonckheere, S. M. Disney, M. R. Lambrecht, and D. R. Towill, “Measuring and Avoiding the Bullwhip Effect: A Control Theoretic Approach”, European Journal of Operational Research, vol. 147, n° 3, 2003, pp. 567-590.
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Y. Ouyang and X. Li, “The Bullwhip Effect in Supply Chain Networks”, European Journal of Ope-rational Research, vol. 201, n° 3, 2010, pp. 799-810.
G. Caloiero, F. Strozzi, and J. M. Zaldívar Comenges, “A Supply Chain as a Series of Filters or Amplifiers of the Bullwhip Effect”, International Journal of Production Economics, vol. 114, n° 2, 2008, pp. 631-645.
M. Coppini, C. Rossignoli, T. Rossi, and F. Strozzi, “Bullwhip Effect and Inventory Oscillations Analysis Using the Beer Game Model”, International Journal of Production Research, vol. 48, n°. 13, 2010, pp. 3943-3956.
R. Dominguez, J. M. Framinan, and S. Cannella, “Serial vs. Divergent Supply Chain Networks: A ComparativeAnalysis of the Bullwhip Effect”, International Journal of Production Research, vol 52, n° 7, 2014, pp. 2194-2210.
R. N. Boute and M. R. Lambrecht, “Exploring the Bullwhip Effect by Means of Spreadsheet Simu-lation”, INFORMS Transactions on Education, vol. 10, n° 1, 2009, pp. 1-9.
P. Wangphanich, S. Kara and B. Kayis, “Analysis of the Bullwhip Effect in Multi-Product, Multi-Stage Supply Chain Systems–a Simulation Approach”, International Journal of Production Research, vol. 48, n° 15, 2010, pp. 4501-4517.
X. Wang & S. M. Disney. The bullwhip effect: Progress, trends and directions. European Journal of Operational Research, vol. 250, n° 3, 2016, pp. 691-701.
R. Dominguez, S. Cannella, & J. M. Framinan, “The impact of the supply chain structure on bullwhip effect”, Applied Mathematical Modelling, 2015.
C. H. Nagaraja, A. Thavaneswaran & S. S. Appadoo, Measuring the bullwhip effect for supply chains with seasonal demand components. European Journal of Operational Research, vol. 242, n° 3, 2015, pp. 445-454.
J. D. Sterman, “Modeling managerial behavior: Misperceptions of feedback in a dynamic decision making experiment”, Management science, vol. 35, n° 3, 1989, pp. 321-339.
R. Bhattacharya and S. Bandyopadhyay, “A Review of the Causes of Bullwhip Effect in a Supply Chain”, The International Journal of Advanced Manufacturing Technology, Vol. 54, n° 9-12, 2011, pp. 1245-1261.
X. Zhang, and G. J. Burke, “Analysis of Compound Bullwhip Effect Causes”, European Journal of Operational Research, Vol. 210 n° 3, 2011, pp. 514-526.
A. Hassanzadeh, A. Jafarian and M. Amiri, “Modeling and Analysis of the Causes of Bullwhip Effect in Centralized and Decentralized Supply Chain Using Response Surface Method”, Applied Mathematical Modelling, Vol. 38, n° 9, 2014, pp. 2353-2365.
E. Sucky, “The Bullwhip Effect in Supply Chains—An Overestimated Problem?”, International Journal of Production Economics, Vol. 118, n° 1, 2009, pp. 311-322.
G. P. Cachon, T. Randall, and G. M. Schmidt, “In Search of the Bullwhip Effect”, Manufacturing & Service Operations Management, Vol. 9, n° 4, 2009, pp. 457-479.
R. Metters, “Quantifying the Bullwhip Effect in Supply Chains”, Journal of Operations Management, Vol. 15, n° 2, 1997, pp. 89-100.
L. Chen, and H. L. Lee, “Bullwhip Effect Measurement and its Implications”, Operations Research, Vol. 60, n° 4, 2012, pp. 771-784.
F. Chen, Z. Drezner, J. K. Ryan, and D. Simchi-Levi, “Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information”, Management Science, Vol. 46, n° 3, 2000, pp. 436-443.
J. G. Kim, D, Chatfield,T. P. Harrison, and J. C. Hayya, “Quantifying the Bullwhip Effect in a Supply Chain with Stochastic Lead Time”, European Journal of Operational Research, Vol. 173, n° 2, 2006, pp. 617-636.
H. T. Luong, “Measure of Bullwhip Effect in Supply Chains with Autoregressive Demand Process”, European Journal of Operational Research, vol. 180, n° 3, 2007, pp. 1086-1097.
J. Dejonckheere, S. M. Disney, M. R. Lambrecht, and D. R. Towill, “Measuring and Avoiding the Bullwhip Effect: A Control Theoretic Approach”, European Journal of Operational Research, vol. 147, n° 3, 2003, pp. 567-590.
T. T. H. Duc, H. T. Luong, and Y. D. Kim, “A Measure of Bullwhip Effect in Supply Chains with a Mixed Autoregressive-Moving Average Demand Process”, European Journal of Operational Re-search, Vol. 187, n° 1, 2008, pp. 243-256.
J. Shan, S. Yang, S. Yang, and J. Zhang, “An Empirical Study of the Bullwhip Effect in China”, Production and Operations Management, Vol. 23, n° 4, 2014, pp. 537-551.
J. C. Fransoo, and M. J. Wouters, “Measuring the Bullwhip Effect in the Supply Chain”, Supply Chain Management: An International Journal, vol. 5, n° 2, 2000, pp. 78-89.
Y. Ouyang and C. Daganzo, “Characterization of the Bullwhip Effect in Linear, Time-Invariant Supply Chains: Some Formulae and Tests”, Management Science, vol. 52, n° 10, 2006, pp. 1544-1556.
Y. Ouyang and X. Li, “The Bullwhip Effect in Supply Chain Networks”, European Journal of Ope-rational Research, vol. 201, n° 3, 2010, pp. 799-810.
G. Caloiero, F. Strozzi, and J. M. Zaldívar Comenges, “A Supply Chain as a Series of Filters or Amplifiers of the Bullwhip Effect”, International Journal of Production Economics, vol. 114, n° 2, 2008, pp. 631-645.
M. Coppini, C. Rossignoli, T. Rossi, and F. Strozzi, “Bullwhip Effect and Inventory Oscillations Analysis Using the Beer Game Model”, International Journal of Production Research, vol. 48, n°. 13, 2010, pp. 3943-3956.
R. Dominguez, J. M. Framinan, and S. Cannella, “Serial vs. Divergent Supply Chain Networks: A ComparativeAnalysis of the Bullwhip Effect”, International Journal of Production Research, vol 52, n° 7, 2014, pp. 2194-2210.
R. N. Boute and M. R. Lambrecht, “Exploring the Bullwhip Effect by Means of Spreadsheet Simu-lation”, INFORMS Transactions on Education, vol. 10, n° 1, 2009, pp. 1-9.
P. Wangphanich, S. Kara and B. Kayis, “Analysis of the Bullwhip Effect in Multi-Product, Multi-Stage Supply Chain Systems–a Simulation Approach”, International Journal of Production Research, vol. 48, n° 15, 2010, pp. 4501-4517.
X. Wang & S. M. Disney. The bullwhip effect: Progress, trends and directions. European Journal of Operational Research, vol. 250, n° 3, 2016, pp. 691-701.
R. Dominguez, S. Cannella, & J. M. Framinan, “The impact of the supply chain structure on bullwhip effect”, Applied Mathematical Modelling, 2015.
C. H. Nagaraja, A. Thavaneswaran & S. S. Appadoo, Measuring the bullwhip effect for supply chains with seasonal demand components. European Journal of Operational Research, vol. 242, n° 3, 2015, pp. 445-454.
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Published
2016-12-01
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Artículos
How to Cite
1.
Romero Rodríguez D, Aguirre Acosta R, Polo Obregón S, Sierra Altamiranda Álvaro, Daza-Escorcia JM. Measurement of the whip effect in supply networking. ingeniare [Internet]. 2016 Dec. 1 [cited 2025 Dec. 5];(20):13-32. Available from: https://revistas.unilibre.edu.co/index.php/ingeniare/article/view/406
