IE interfaces (산업공학)

Korean Institute of Industrial Engineers (대한산업공학회)
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Bullwhip Effect and Lot Size: the Main Cause of BwE is Lot Size

황소채찍효과와 발주크기: 대형할인마트에서의 황소채찍효과

  • 백시현 (중국연변과학기술대학교 경영정보학과)
  • Received : 20070700
  • Accepted : 20080100
  • Published : 2008.06.30
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Abstract

Normally, suppliers have to decide on what, how much, and when to replenish stocks of goods based on a data flow generated by a vendor managed inventory(VMI) system. But information from supply chain is often misleading. It is common for such data to be distorted by a lack of coordination and synchronization across several business entities managing different supply chain operations. This phenomenon is called the 'bullwhip effect(BwE)'. Many researchers, working over many years, have studied the reasons for the BwE. They have proposed various remedies, but this phenomenon persists. Though overlooked in previous research, this paper reveals that the 'lot size' of a supply chain of distribution is indeed the main cause of the BwE. In addition, some problems in the existing methods of measuring the BwE are identified and a revised much improved method of measurement is suggested.

Keywords

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