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Practical ways of reducing Bullwhip: the case of the Glosuch Global Supply Chain - Distribution Article
The article entitled: "Practical ways of reducing Bullwhip: the case of the Glosuch Global Supply Chain" is in the Distribution Articles section of Operations Management Papers area...
ARTICLE DESCRIPTION: Bullwhip costs money, wastes resources, and loses customers. So drawing on a basis of analytical, simulation and experiential techniques, the authors’ present four material flow principles which can be recommended as strategies to reduce the bullwhip effect...
MORE INFO: Practical ways of reducing Bullwhip: the case of the Glosuch Global Supply Chain Bullwhip costs money, wastes resources, and loses customers. So drawing on a basis of analytical, simulation and experiential techniques, the authors’ present four material flow principles which can be recommended as strategies to reduce the bullwhip effect... A real-world case study from the precision mechanical engineering sector is employed to illustrate the effect of rapid response manufacturing and supply chain integration. Analyses of six years of Glosuch supply chain time-series data indicate amplification patterns damped by 36% plus a consequent 45% reduction in global inventory. The results serve to validate the four material flow principles of: selecting appropriate control systems, cycle time-compression, information transparency throughout the chain and echelon elimination wherever practicable. Interestingly, these results also suggest that manufacturing agility can improve the dynamic performance of the supply chain, mitigating variability-induced wastes including excess inventory and poor capacity utilisation. This creates a win-win scenario for both manufacturing and distribution facilities.
PUBLISHER: Institute of Operations Management
Page number: Page: 24 Word count: Words: approx. 2500
Vol 26 - No 10 - December 2000/January 2001
The article can be downloaded in full from the publisher's site i.e. the Institute of Operations Management.
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