![]() | Only 14 pages are availabe for public view |
Abstract A Supply Chain is a network of organizations that are involved in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer. Supply Chain Management (SCM) concerns the integrated and process-oriented approach to the design, management, and control of the SC, with the aim at producing value for the customer. One of the areas of SCM is minimizing the inventory cost within the supply chain, and studying the variability of ordered quantities in the supply chain. The objectives of this work are to formulate the inventory totaJ cost when retailers face truncated demand with all members follow (S,s) continuous review policy, and to study the bullwhip effect in an arborescent supply chain developing a bullwhip measure masking the order batching. A counter measure helps in dampening the bullwhip effect based on local information sharing is proposed. The results showed that the developed model yields in minimum inventory total cost (through finding the optimal maximum inventory level S*). The analysis of the results of the developed measure successfully masks the effect of order batching on the demand variability. The developed bullwhip dampening algorithm succeeded in dampening the demand variability locally. Keywords: Inventory control, (S,s) review policy, Arborescent supply chain, upply chain coordination, Bullwhip measures |