Effect of third-party warehouse on bullwhip effect in supply chains with stochastic lead time | |
| Author | Sirikan Tachateerawat |
| Call Number | AIT Thesis no.ISE-10-09 |
| Subject(s) | Business logistics Stochastic analysis Warehouses |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Industrial and Manufacturing Engineering, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Series Statement | Thesis ; no. ISE-10-09 |
| Abstract | In supply chains network, ther e is one phenomenon which is ca lled bullwhip effect. This phenomenon causes the demand fluctuation in s upply chains. Therefore, the reduction of bullwhip effect is more beneficial for bus iness. One popular suggestion to reduce the bullwhip effect is adding a th ird-party warehouse in supply ch ains. However, the study of Duc et al.(2009) found that this approach canno t help to reduce the bullwhip effect in case of deterministic lead time. In addition, the lead time in many supply chains is a stochastic variable. Hence, this study is conducted to investigate the impact of a third-party warehouse on the bullwhip effect by compar ing the bullwhip effect measure in two investigated supply chains sy stems. These two systems are 1) the two-stage supply chain without a third-party warehouse and 2) the three-stage supply chain with a third-party warehouse. In both systems, the first-order au toregressive (AR (1)) demand process, and the order up to level inventory policy are ad opted for replenishment. In addition, the minimum mean squared error (MMSE) technique is applied for demand forecasting. The comparison of the systems with and without a third-party warehouse is then evaluated. From the experimental results, it can be conc luded that the third-pa rty warehouse does not help to reduce the bullwhip effect when the le ad times of the third-party warehouse and the two retailers are equal. |
| Year | 2010 |
| Corresponding Series Added Entry | Asian Institute of Technology. Thesis ; no. ISE-10-09 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Systems Engineering (ISE) |
| Chairperson(s) | Huynh Trung Luong |
| Examination Committee(s) | Voratas Kachitvichyanukul;Bohez, Erik L.J. |
| Scholarship Donor(s) | RTG Fellowship |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 2010 |