2006•Industrial Engineering and Engineering ManagementRequires access

Value of History Order Quantity Information in a Supply Chain with ARMA (1,1) Demand

Chuanxu Wang

Abstract

Bullwhip effect and supply chain cost are popular topics in supply chain management.This paper analyzes the impact of history order quantity in a two—level supply chain with ARMA(1,1)demand on bullwhip effect and manufacturer cost.This paper shows that using the history order information can reduce bullwhip effect and manufacturer cost further,and that if available history order information is entirely used,the contribution of demand information sharing to supply chain is not as significant as expected.

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Key concepts: Bullwhip effect, Supply chain, Demand chain, Order (exchange), Supply chain management, Order processing, Information sharing, Value of information