Order Flow in Serial Supply Chains

Dean Chatfield; Jeon Kim; Terry Paul Harrison; Jack Hayya

Order Flow in Serial Supply Chains

Dean Chatfield, Jeon Kim, Terry Paul Harrison, Jack Hayya

Supply Chain and Information Systems

Research output: Contribution to conference › Paper › peer-review

2 Scopus citations

Abstract

We investigate a serial supply chain, using a new simulation engine (SISCO; Chatfield, 2001). We begin with a serial supply chain with five nodes - customer, retailer, wholesaler, distributor, factory - and then verify the simulation results mathematically. We find that if the order system parameters remain unchanged there would be no Bullwhip Effect. But with human intervention in the updating of system parameters, there would be an amplification of variance as we go upstream. We also find that the use of the normal approximation to lead-time demand in setting safety stocks could be egregiously wrong, if negative orders (e.g., returns) are not allowed.

Original language	English (US)
Pages	1967-1972
Number of pages	6
State	Published - Dec 1 2002
Event	Decision Sciences Institute 2002 Proceedings - San Diego, CA, United States Duration: Nov 23 2002 → Nov 26 2002

Other

Other	Decision Sciences Institute 2002 Proceedings
Country/Territory	United States
City	San Diego, CA
Period	11/23/02 → 11/26/02

All Science Journal Classification (ASJC) codes

Management Information Systems
Hardware and Architecture

Cite this

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title = "Order Flow in Serial Supply Chains",

abstract = "We investigate a serial supply chain, using a new simulation engine (SISCO; Chatfield, 2001). We begin with a serial supply chain with five nodes - customer, retailer, wholesaler, distributor, factory - and then verify the simulation results mathematically. We find that if the order system parameters remain unchanged there would be no Bullwhip Effect. But with human intervention in the updating of system parameters, there would be an amplification of variance as we go upstream. We also find that the use of the normal approximation to lead-time demand in setting safety stocks could be egregiously wrong, if negative orders (e.g., returns) are not allowed.",

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AU - Chatfield, Dean

AU - Kim, Jeon

AU - Harrison, Terry Paul

AU - Hayya, Jack

PY - 2002/12/1

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N2 - We investigate a serial supply chain, using a new simulation engine (SISCO; Chatfield, 2001). We begin with a serial supply chain with five nodes - customer, retailer, wholesaler, distributor, factory - and then verify the simulation results mathematically. We find that if the order system parameters remain unchanged there would be no Bullwhip Effect. But with human intervention in the updating of system parameters, there would be an amplification of variance as we go upstream. We also find that the use of the normal approximation to lead-time demand in setting safety stocks could be egregiously wrong, if negative orders (e.g., returns) are not allowed.

AB - We investigate a serial supply chain, using a new simulation engine (SISCO; Chatfield, 2001). We begin with a serial supply chain with five nodes - customer, retailer, wholesaler, distributor, factory - and then verify the simulation results mathematically. We find that if the order system parameters remain unchanged there would be no Bullwhip Effect. But with human intervention in the updating of system parameters, there would be an amplification of variance as we go upstream. We also find that the use of the normal approximation to lead-time demand in setting safety stocks could be egregiously wrong, if negative orders (e.g., returns) are not allowed.

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M3 - Paper

AN - SCOPUS:1642438913

SP - 1967

EP - 1972

T2 - Decision Sciences Institute 2002 Proceedings

Y2 - 23 November 2002 through 26 November 2002

ER -

Order Flow in Serial Supply Chains

Abstract

Other

All Science Journal Classification (ASJC) codes

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