Implication of information sharing on Bullwhip effects in a toy supply chain

Chee Yew Wong, Mohamed El-Beheiry, John Johansen, Hans Henrik

    Research output: Contribution to book/anthology/report/conference proceedingArticle in proceedingResearchpeer-review

    Abstract

    Coordination of toy supply chains is challenged by volatile and seasonal demand with high forecast errors and bullwhip effects. This paper compares Bullwhip effects in a three-level divergent a toy supply chain between retailers who shared downstream demand information (consumer sales) and retailers who did not share. Bullwhip effect is reduced when the shared volume of retailers who shared downstream demand information increased; however, fill rate performance is not improved. Key causes of Bullwhip effect are identified - forecast updating, timeliness of demand signal, limited use of shared demand information, and replenish coordination. Two approaches to explore the use of shared information are tested. A simple forecast adjustment procedure is proven effective in improving annual forecast and reducing Bullwhip effect three months after product launch. A proposed coordination algorithm using early order commitment has decreased the Bullwhip effect for all supply chain members even if it is applied locally.
    Original languageEnglish
    Title of host publicationProceedings of the 2nd. International Workshop on Supply Management and Information System
    Number of pages10
    PublisherDepartment of Building and Real Estate The Hong Kong Polytechnic University
    Publication date2004
    Pages87-96
    ISBN (Print)9623673868
    Publication statusPublished - 2004
    Event2nd International Workshop on Supply Management and Information System - Hong Kong, China
    Duration: 6 Jul 20049 Jul 2004
    Conference number: 2

    Conference

    Conference2nd International Workshop on Supply Management and Information System
    Number2
    CountryChina
    CityHong Kong
    Period06/07/200409/07/2004

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