Comparing the bullwhip effect under different inventory policies in engineering project supply chains
Xiaolong Xue
Abstract
Xiaolong Xue
Abstract
Measuring bullwhip effect is useful for making better controls on production planning and enhancing the supply chain operating efficiency.First,this article establishes the comparative analysis model of bullwhip effect between(s,S)and Periodic Review(PR)inventory policy based on the quantitative bullwhip effect model under different inventories.Then,the impacts of lead time,inventory review time,autocorrelation coefficient,and the number of samples on the gap of bullwhip effect under(s,S)and PR IP are analyzed.The results show that bullwhip effect in PR is more intense than(s,S)inventory policy.Contractors should pay more attention to control bullwhip effect when adopting PR inventory policy to enhance the total operating efficiency of the engineering project supply chains.
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Measuring bullwhip effect is useful for making better controls on production planning and enhancing the supply chain operating efficiency.First,this article establishes the comparative analysis model of bullwhip effect between(s,S)and Periodic Review(PR)inventory policy based on the quantitative bullwhip effect model under different inventories.Then,the impacts of lead time,inventory review time,autocorrelation coefficient,and the number of samples on the gap of bullwhip effect under(s,S)and PR IP are analyzed.The results show that bullwhip effect in PR is more intense than(s,S)inventory policy.Contractors should pay more attention to control bullwhip effect when adopting PR inventory policy to enhance the total operating efficiency of the engineering project supply chains.
Key concepts: Bullwhip effect, Supply chain, Lead time, Inventory control, Moving average, Production (economics), Economics, Supply chain management