Inventory cost consequences of variability demand process within a multi-echelon supply chain
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Organización de EmpresasFecha de publicación
2008-06-02Editorial
European Association for Traffic, Transport and Business LogisticsCita bibliográfica
CAMPUZANO BOLARÍN, Francisco, LISEC, Andrej, LARIO ESTEBAN, Francisco Cruz. Inventory cost consequences of variability demand process within a multi-echelon supply chain. Journal of Logistics & Sustainable Transport, 1 (3). Junio 2008. ISSN 1854-3332Palabras clave
Efecto BullwhipAmplificación de la demanda
Cadena logística
Bullwhip Effect
Amplification of demand
Supply chain
System dynamic
Dinámica de sistemas
Resumen
The bullwhip effect (Lee et al, 1997a) is a known supply chain phenomenon where small variations in end item
demand create oscillations that amplify throughout the chain. Different price elasticity of demand influence different
changes of demand when prices of items are changing on the time horizon. The variance of the orders at the end
user placed on suppliers or on manufacturer increases with the orders flow upstream in the logistics chain. This
creates harmful consequences in inventory levels and all kind of inventory costs that may affect added value of
activities along the logistics chain and finally affect Net Present Value of all activities in the chain.
Traditional model of dynamic supply chain structures is used for this particular study, based on the seminal work
of Forrester Diagrams (Forrester 1961). Simulation platform for supply chain management at stochastic demand
developed by Campuzano (2006) has been used. VENSIM Simulation Software was previously used for
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