Order Flow in Serial Supply Chains

Dean Chatfield, Jeon Kim, Terry Paul Harrison, Jack Hayya

Research output: Contribution to conferencePaper

2 Scopus citations

Abstract

We investigate a serial supply chain, using a new simulation engine (SISCO; Chatfield, 2001). We begin with a serial supply chain with five nodes - customer, retailer, wholesaler, distributor, factory - and then verify the simulation results mathematically. We find that if the order system parameters remain unchanged there would be no Bullwhip Effect. But with human intervention in the updating of system parameters, there would be an amplification of variance as we go upstream. We also find that the use of the normal approximation to lead-time demand in setting safety stocks could be egregiously wrong, if negative orders (e.g., returns) are not allowed.

Original languageEnglish (US)
Pages1967-1972
Number of pages6
StatePublished - Dec 1 2002
EventDecision Sciences Institute 2002 Proceedings - San Diego, CA, United States
Duration: Nov 23 2002Nov 26 2002

Other

OtherDecision Sciences Institute 2002 Proceedings
CountryUnited States
CitySan Diego, CA
Period11/23/0211/26/02

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Hardware and Architecture

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    Chatfield, D., Kim, J., Harrison, T. P., & Hayya, J. (2002). Order Flow in Serial Supply Chains. 1967-1972. Paper presented at Decision Sciences Institute 2002 Proceedings, San Diego, CA, United States.