Abstract
Bullwhip effect is a variability of demand distorting phenomenon in supply chain. The difference in variability of demand is caused by varied methods in interpreting the data. One of the causes is the lot sizing rules which are used by the vendors. This research analyzes the effect of lot sizing rules on bullwhip effect on determine the order quantity with Silver Meal method. The supply chain model consists of two suppliers who are three retailers and one wholesaler. The bullwhip effect can be seen on the variability of wholesaler’s demand. Bullwhip analysis is conducted using a simulation method. This paper will also show the impact of higher variability and the impact of holding cost. The result showed that Silver Meal method will produced higher variability on wholesaler demand. Using Silver meal on higher variability demand will decrease the bullwhip effect by only 1%. By reducing the holding cost it will increase the bullwhip effect, however the total cost will be lower.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Pujawan, I.N.: The effect of lot sizing rules on order variability. Eur. J. Oper. Res. 159(3), 617–635 (2003)
Potter, A., Disney, S.M.: Bullwhip and batching: an exploration. Int. J. Prod. Econ. 104(2), 408–418 (2006)
Pujawan, N., Silver, E.A.: Augmenting the lot sizing order quantity. Eur. J. Oper. Res. 188(3), 705–722 (2008)
Wang, X., Disney, S.M.: The bullwhip effect: Progress, trends and directions. Eur. J. Oper. Res. 250(3), 691–701 (2016)
Hussain, M., dan Drake, P.R.: Analysis of the bullwhip effect with order batching in multiple-echelon supply chain. Int. J. Phys. Dist. Logis. Manag. 41(8), 797–814 (2011)
Nguyen, D.T., Adulyasak, Y., Landry, S.: Research manuscript: the bullwhip effect rule-based supply chain planning systems—a case-based simulation at a hard goods retailer. Omega 98, 102121 (2021)
Govindan, K.: The optimal replenishment policy for time varying stochastic demand under vendor managed inventory 242(2), 402–423 (2015)
Schulz, T.: A new Silver-Meal based heuristic for single-item dynamic lot sizing problem with returns and remanufacturing. Int. J. Prod. Res. 49(9), 2519–2533 (2011)
Su, C.-T., Wong, J.-T.: Design of a replenishment system for a stochastic dynamic production/forecast lot-sizing problem under bullwhip effect. Expert Syst. Appl. 34(1), 173–180 (2008)
Ponte, B., Dominguez, R., Cannella, S., dan Farminan, J.M.: The implications of batching in the bullwhip effect and customer service if closed-loop supply chain. Int. J. Prod. Econ. 244, 108379 (2022)
Villa, S.: Competing for supply and demand: Understanding retailers’ ordering decision. Int. J. Prod. Econ. 144, 108355 (2022)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Irena, L., Widyadana, I.G.A. (2023). Simulation for Analyzing Effect of Silver Meal Lot Sizing Rules in Bullwhip Effect. In: Vasant, P., et al. Intelligent Computing and Optimization. ICO 2023. Lecture Notes in Networks and Systems, vol 854. Springer, Cham. https://doi.org/10.1007/978-3-031-50151-7_4
Download citation
DOI: https://doi.org/10.1007/978-3-031-50151-7_4
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-50150-0
Online ISBN: 978-3-031-50151-7
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)