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Akram Amine El-Tannir
Beirut Arab University Faculty of Engineering Department of Industrial and Management Engineering Debbieh, Lebanon
Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Transportation

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Bullwhip Effect Variance Ratio Approximations for Aggregated Retail Orders in Supply Chains Akram Amine El-Tannir
International Journal of Supply Chain Management Vol 3, No 3 (2014): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

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Abstract

This paper develops two approximations to estimate the variance of aggregated retailer orders that is a form of the widely recognized Bullwhip effect, using the renewal theory and available Markov chain models for the two-echelon supply chain. These approximations are used to develop several managerial insights on inventory policies used by retailers who make replenishment orders to a supplier that uses a periodic review inventory policy where market demand is assumed to be based on Poisson market orders.
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