Title: Measure of bullwhip effect - a dual sourcing model

Authors: Kittiwat Sirikasemsuk; Huynh Trung Luong

Addresses: Industrial Systems Engineering Programme, School of Engineering and Technology, Asian Institute of Technology, P.O. Box 4, Klong Luang, Pathumthani 12120, Thailand ' Industrial Systems Engineering Programme, School of Engineering and Technology, Asian Institute of Technology, P.O. Box 4, Klong Luang, Pathumthani 12120, Thailand

Abstract: The bullwhip effect in which the demand in the upstream section of a supply chain is distorted gives rise to an unfavourable phenomenon. Most of the existing research studies have investigated the bullwhip effect under a single sourcing environment. However, in this research the behaviour of the bullwhip effect under a dual sourcing environment for a first-order autoregressive [AR(1)] demand process using an analytical approach is examined. The conditions under which the bullwhip effect is reduced in the dual sourcing environment in comparison to that in the single sourcing environment are subsequently derived.

Keywords: supply chain management; SCM; bullwhip effect; autoregressive modelling; dual sourcing; base stock policy.

DOI: 10.1504/IJOR.2014.063149

International Journal of Operational Research, 2014 Vol.20 No.4, pp.396 - 426

Received: 11 Aug 2012
Accepted: 01 Dec 2012
Published online: 29 Jul 2014 *

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