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Title: The impact of information enrichment on the bullwhip effect in supply chains : a control engineering perspective
Authors: Dejonckheere, Jeroen
Disney, S
Lambrecht, Marc
Towill, D
Issue Date: 2002
Publisher: K.U.Leuven - Departement toegepaste economische wetenschappen
Series Title: DTEW Research Report 0213 pages:1-33
Abstract: This paper examines the beneficial impact of information sharing in multi-echelon supply chains. We compare a traditional supply chain, in which only the first stage in the chain observes end consumer demand and upstream stages have to base their forecasts on incoming orders, with an information enriched supply chain where customer demand data is shared throughout the chain. Two types of replenishment rules are analysed: order-up-to policies and smoothing policies. The methodology is based on control systems engineering and allows us to gain valuable insights into the dynamic behaviour of supply chain replenishment rules. We also introduce a control engineering based measure to quantify the variance amplification (bullwhip) or variance reduction.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Research Center for Operations Management, Leuven

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