Simulation for Analyzing Effect of Silver Meal Lot Sizing Rules in Bullwhip Effect

Liong Irena, I. Gede Agus Widyadana*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Bullwhip effect is a variability of demand distorting phenomenon in supply chain. The difference in variability of demand is caused by varied methods in interpreting the data. One of the causes is the lot sizing rules which are used by the vendors. This research analyzes the effect of lot sizing rules on bullwhip effect on determine the order quantity with Silver Meal method. The supply chain model consists of two suppliers who are three retailers and one wholesaler. The bullwhip effect can be seen on the variability of wholesaler’s demand. Bullwhip analysis is conducted using a simulation method. This paper will also show the impact of higher variability and the impact of holding cost. The result showed that Silver Meal method will produced higher variability on wholesaler demand. Using Silver meal on higher variability demand will decrease the bullwhip effect by only 1%. By reducing the holding cost it will increase the bullwhip effect, however the total cost will be lower.

Original languageEnglish
Title of host publicationIntelligent Computing and Optimization - Proceedings of the 6th International Conference on Intelligent Computing and Optimization 2023 ICO2023
EditorsPandian Vasant, Mohammad Shamsul Arefin, Vladimir Panchenko, J. Joshua Thomas, Elias Munapo, Gerhard-Wilhelm Weber, Roman Rodriguez-Aguilar
PublisherSpringer Science and Business Media Deutschland GmbH
Pages36-45
Number of pages10
ISBN (Print)9783031501500
DOIs
Publication statusPublished - 2023
Externally publishedYes
Event6th International Conference on Intelligent Computing and Optimization, ICO 2023 - Hua Hin, Thailand
Duration: 27 Apr 202328 Apr 2023

Publication series

NameLecture Notes in Networks and Systems
Volume854 LNNS
ISSN (Print)2367-3370
ISSN (Electronic)2367-3389

Conference

Conference6th International Conference on Intelligent Computing and Optimization, ICO 2023
Country/TerritoryThailand
CityHua Hin
Period27/04/2328/04/23

Keywords

  • Bullwhip effect
  • Dynamic
  • Lot sizing
  • Silver meal
  • Simulation
  • Supply chain

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