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Simulating the Impact of Defective Rates on the Bullwhip Effect in a Supply Chain: A Reciprocating Compressor Manufacturing Case Study with Exponential Smoothing Forecasting
Author(s)
Date Issued
January 1, 2024
Type
Conference Paper
Abstract
This study was dedicated to simulating the impact of defective rates on the bullwhip effect within the context of a supply chain, with a specific focus on a case study involving reciprocating compressor manufacturing. The supply chain configuration encompassed a distributor, a factory, customer, and a remanufacturer. Customer demand was forecasted utilizing the exponential smoothing method, while an order-up-to inventory policy was implemented. The results unveiled a direct correlation between an increase in defective rates and a heightened bullwhip effect. Moreover, the study demonstrated that an elevation in the average yield rate corresponded to a mitigation of the bullwhip effect.
Citation
IEEE International Conference on Industrial Engineering and Engineering Management, 370-374, 2024