Closed-loop supply chains: What reverse logistics factors influence performance?
This paper analyses the inventory and order flow dynamics in closed-loop supply chains (CLSCs). In this kind of supply chains the reverse flow of materials entering the system for recycling purposes complicates the way in which inventories should be managed and replenishment policies should be designed. Specifically, we analyse the relationships between some reverse logistics’ factors (remanufacturing lead-time, return rate of recycled products, reverse order policy, and number of supply chain tiers) on the order and inventory variance amplification. We firstly perform a systematic literature review of the related studies. Secondly, by adopting a difference equation math approach and design…
Insights on Partial Information Sharing in Supply Chain dynamics
This paper provides an assessment of partial Information Sharing (IS) in Supply Chain (SC). We study the dynamics of collaborative multi-echelon structure, characterized by an increasing level of information visibility among partners. To do so, we mathematically model six four-echelon serial SCs via difference equations and conduct numerical simulations on the basis of a robust design of experiment. Results shows how (1) as the extent of IS increases, the performance of whole SC improves as well, and (2) the impact of IS depends not on which particular members are involved but on the number of collaborative members.
Inventory policies and information sharing in multi-echelon supply chains
The aim of this article is to show how to modify a replenishment rule in relation to the operational information shared by suppliers. More specifically, we present a model of an Automatic Pipeline Variable Inventory and Order-Based Production Control System rule for a multi-echelon supply chain characterised by different increasing levels of shared information. A numerical study is presented to underline the performance differences for three variants of the smoothing order rule in terms of bullwhip reduction, inventory stability and operational and customer responsiveness. Results show how the effectiveness of a smoothing replenishment rule depends on the level of information sharing.
The effect of inventory record inaccuracy in information exchange supply chains
Abstract The goal of this paper is to quantify the impact of Inventory Record Inaccuracy on the dynamics of collaborative supply chains, both in terms of operational performance (i.e. order and inventory stability), and customer service level. To do so, we model an Information Exchange Supply Chain under shrinkage errors in the inventory item recording activity of their nodes, present the mathematical formulation of such supply chain model, and conduct a numerical simulation assuming different levels of errors. Results clearly show that Inventory Record Inaccuracy strongly compromises supply chain stability, particularly when moving upwards in the supply chain. Important managerial insights…
Demand Sharing Inaccuracies in Supply Chains: A Simulation Study
We investigate two main sources of information inaccuracies (i.e., errors and delays) in demand information sharing along the supply chain (SC). Firstly, we perform a systematic literature review on inaccuracy in demand information sharing and its impact on supply chain dynamics. Secondly, we model several SC settings using system dynamics and assess the impact of such information inaccuracies on SC performance. More specifically, we study the impact of four factors (i.e., demand error, demand delay, demand variability, and average lead times) using three SC dynamic performance indicators (i.e., bullwhip effect, inventory variability, and average inventory). The results suggest that demand …
On the Bullwhip Avoidance Phase: The Synchronised Supply Chain
Abstract The aim of this paper is to analyse the operational response of a Synchronised Supply Chain (SSC). To do so, first a new mathematical model of a SSC is presented. An exhaustive Latin Square design of experiments is adopted in order to perform a boundary variation analysis of the main three parameters of the periodic review smoothing ( S , R ) order-up-to policy: i.e., lead time, demand smoothing forecasting factor, and proportional controller of the replenishment rule. The model is then evaluated under a variety of performance measures based on internal process benefits and customer benefits. The main results of the analysis are: (I) SSC responds to violent changes in demand by re…