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Article
Publication date: 8 February 2019

Sanjita Jaipuria and Siba Sankar Mahapatra

The purpose of this paper is to propose a forecasting model to predict the demand under uncertain environment to control the bullwhip effect (BWE) considering review-period…

Abstract

Purpose

The purpose of this paper is to propose a forecasting model to predict the demand under uncertain environment to control the bullwhip effect (BWE) considering review-period order-up-to level ((R, S)) inventory control policy and its different variants such as (R, βS) (R, γO) and (R, γO, βS) proposed by Jakšič and Rusjan, (2008) and Bandyopadhyay and Bhattacharya (2013).

Design/methodology/approach

A hybrid forecasting model has been developed by combining the feature of discrete wavelet transformation (DWT) and an intelligence technique, multi-gene genetic programming (MGGP), denoted as DWT-MGGP. Performance of DWT-MGGP model has been verified under (R, S) inventory control policy considering demand from three different manufacturing companies.

Findings

A comparison between DWT-MGGP model and autoregressive integrated moving average forecasting model has been done by estimating forecast error and BWE. Further, this study has been extended with analysing the behaviour of BWE considering different variants of (R, S) policy such as (R,βS) (R, γO) and (R,γO,βS) and found that BWE can be moderated by controlling the inventory smoothing (β) and order smoothing parameters (γ).

Research limitations/implications

This study is limited to different variants of (R, S) inventory control policy. However, this study can be further extended to continuous review policy.

Practical implications

The proposed DWT-MGGP model can be used as a suitable demand forecasting model to control the BWE when (R, S), (R,βS) (R,γO) and (R,γO,βS)inventory control policies are followed for replenishment.

Originality/value

This study analyses the behavior of BWE through controlling the inventory smoothing (β) and order smoothing parameters (γ) when demand is predicted using DWT-MGGP forecasting model and order is estimated using (R, S), (R,βS) (R,γO) and (R,γO,βS) inventory control policies.

Details

Journal of Modelling in Management, vol. 14 no. 2
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 7 April 2015

Sanjita Jaipuria and S. S. Mahapatra

The purpose of this paper is to provide a simulation modelling framework to examine the behaviour of a serial make-to-stock (MTS) manufacturing system under the influence of…

Abstract

Purpose

The purpose of this paper is to provide a simulation modelling framework to examine the behaviour of a serial make-to-stock (MTS) manufacturing system under the influence of various uncertainties. Further, the study analyses effect of propagation uncertainties from lower to upper stream of supply chain.

Design/methodology/approach

System dynamics modelling approach has been adopted for modelling and analysing the behaviour of a serial MTS manufacturing system under the influence of different uncertainties such as demand, supplier acquisition rate, raw material (RM) supply lead time, processing time and delay due to machine failure. The backup supply strategy has been proposed to mitigate the adverse effect of the RM supply uncertainty.

Findings

The effect of variations of various factors on the performance of a MTS manufacturing supply chain in measured through various performance measures like work-in-progress (WIP) inventory, backlog and RM shortage at both manufacturer’s and supplier’s end. The benefit of adopting backup supply strategy under RM supply uncertainty is demonstrated.

Research limitations/implications

This work is limited to analysis of a serial MTS manufacturing system dealing with a single product having two machines only. The study can be easily extended to a more complex system with multiple machines, lines and products.

Practical implications

A simple simulation framework has been proposed to analyse the effect of various uncertainties on the performance of a MTS manufacturing system. The managers can simulate complex systems using simulation approaches to generate if-then scenarios to gain insight into practical problems and formulate strategies to mitigate adverse effect of uncertainties at various level of supply chain.

Originality/value

The study analyses behaviour of MTS manufacturing system under the effect of various uncertainties operating simultaneously in the system. A backup supplier strategy is proposed to improve the service level at the customer’s end through improving service level at the supplier’s end. Similarly, effective strategies can be tested with the proposed simple model to reduce the effect of uncertainty at different levels of the supply chain.

Details

Benchmarking: An International Journal, vol. 22 no. 3
Type: Research Article
ISSN: 1463-5771

Keywords

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