The APIOBPCS Deziel and Eilon parameter configuration in supply chain under progressive information sharing strategies

Authors:
Salvatore Cannella;Elena Ciancimino
Affiliations:
University of Palermo, Palermo, Italy;University of Palermo, Palermo, Italy
Venue:
Proceedings of the 40th Conference on Winter Simulation
Year:
2008

Citing 3
Cited 0

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Information distortion in a supply chain: the bullwhip effect

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Abstract

The aim of this paper is to investigate how different smoothing parameter levels of the Automatic Pipeline Inventory and Order Based Production Control System smoothing replenishment rule impact on the bullwhip dampening efficacy, under progressive information sharing strategies. The main results of this work are: (1) The smoothing parameter variations significantly impact on performance of the supply chains characterised by low information sharing level. (2) As smoothing parameters increase, the supply chain process performance improves and the customer service level worsens. This opposite trend noticeably decreases as information sharing level increases. (3) Amongst the bullwhip dampening techniques, deeper information sharing weights more than the value of smoothing parameters. The analysis is performed through continuous time differential equation modelling.