Supply chain dynamics

Abstract

Supply chains show comparative advantages over traditional integrated manufacturing systems in terms of flexibility and quick adjustment to demand variations. However, the tendency to amplify demand variations upward the supply chain, known as the bullwhip effect, has been identified as a major drawback. This study proposes a modelling framework that allows for comparing several production and ordering policies: an inventory-based policy, an order-based policy and a mean-demand-driven policy. © 2009 Springer London.