Minimum Reasonable Inventory and the Bullwhip Effect in an Automotive Enterprise; A “Foresight Vehicle” Demonstrator 2002-01-0461
Demand amplification, or the bullwhip effect, has been identified as contributing to increased uncertainty in the supply chain and hence poor performance in terms of increased costs, protracted lead-times and poor customer service levels. This paper shows the application of a simulation based improvement activity focussing on the ordering decisions within a supply chain. An example of a preliminary business diagnostic and subsequent redesign in a four-tier automotive supply chain is presented including value-volume analysis, variability-volume analysis, part clustering and service level - stocking profiles. Specific improvements of up to 5 to 1 in stock holding are realized for continued customer service levels.
Citation: Naim, M., Disney, S., and Evans, G., "Minimum Reasonable Inventory and the Bullwhip Effect in an Automotive Enterprise; A “Foresight Vehicle” Demonstrator," SAE Technical Paper 2002-01-0461, 2002, https://doi.org/10.4271/2002-01-0461. Download Citation
Author(s):
M. M. Naim, S. M. Disney, G. N. Evans
Affiliated:
Logistics Systems Dynamics Group, Cardiff Business School, Royal Bank of Scotland Group
Pages: 10
Event:
SAE 2002 World Congress & Exhibition
ISSN:
0148-7191
e-ISSN:
2688-3627
Also in:
Foresight Vehicle Technology: Consumer Driven Design, Manufacturing, Supply Chain, and Purchasing-SP-1694, SAE 2002 Transactions Journal of Materials & Manufacturing-V111-5
Related Topics:
Supply chain management
Logistics
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