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.
Minimum Reasonable Inventory and the Bullwhip Effect in an Automotive Enterprise; A “Foresight Vehicle” Demonstrator
Sae Technical Papers
SAE 2002 World Congress & Exhibition ; 2002
2002-03-04
Conference paper
English
Automotive engineering | 2002
|British Library Conference Proceedings | 2002
|Returns and the bullwhip effect
Elsevier | 2012
|FORESIGHT VEHICLE - A vision of the British automotive industry's future
Online Contents | 1999