International Journal of Information Technology & Computer Science ( IJITCS )
This paper is concerned with understanding supply chain dynamics using a multi-echelon inventory and order based production control system. The model uses the control theoretic concepts of variables, flows and feedback processes and is implemented using the iThink software package. The impact of information sharing is measured for both the bullwhip effect and inventory variances. Previous similar studies have focused on investigating the impact of information sharing on bullwhip effect. However, little research has been carried out to explore the impact of information sharing for both bullwhip effect and inventory variances. Through simulation experiments, information sharing has been found more helpful for reducing the inventory variances in a multi-echelon supply chain. It has been shown that in a four tier supply chain information sharing can reduce the demand amplification from 20:1 to 8:1 and inventory variances from 300:1 to 120:1. Further, it has been observed that increasing the percentage of information sharing reduces the bullwhip effect along with safety stock and minimizes the backlog cost. These findings will help supply chain operations manager & designers to reduce the cost, minimize order rate and inventory variances across supply chain.
: Information Sharing, Multi-Echelon Supply Chain, Simulation, Bullwhip effect, APIOBPCS
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