ANALYSIS OF THE CENTRALIZED SUPPLY CHAIN DYNAMICS BY SETTING OPERATIONAL PARAMETERS
DOI:
https://doi.org/10.23055/ijietap.2022.29.3.6797Keywords:
Supply Chain Management, System Dynamics, Bullwhip Effect, Beer Distribution Game, Response Surface Methodology.Abstract
This study aimed to determine the importance of ordering parameters, measure their impact on supply chain dynamics in terms of total cost and the bullwhip effect when these parameters change simultaneously in the supply chain and provide a model for effective supply chain management. Response surface methodology was used for data collection in the context of the dynamic system model to determine the importance and effects of ordering parameters on supply chain dynamics. In this way, after designing a centralized supply chain model (all supply chain members followed the same ordering pattern) using a system dynamics approach, different combinations of ordering parameter levels were implemented using the response surface methodology in the supply chain model. The results were analyzed using ANOVA to determine the significance and intensity of the effects of parameters on supply chain dynamics. The results showed that the expected time for receiving the goods at the specified levels had no significant effect on total cost and bullwhip effect; i.e., when ordering, this parameter could be used more flexibly with the most negligible effect on supply chain dynamics. On the other hand, to achieve a stable supply chain (simultaneously reducing total cost and bullwhip effect), adjusting the amount of safety stock and the work-in-process was necessary to its maximum level.
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