Simulation for Analyzing Effect of Silver Meal Lot Sizing Rules in Bullwhip Effect

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Intelligent Computing and Optimization (ICO 2023)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 854))

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Abstract

Bullwhip effect is a variability of demand distorting phenomenon in supply chain. The difference in variability of demand is caused by varied methods in interpreting the data. One of the causes is the lot sizing rules which are used by the vendors. This research analyzes the effect of lot sizing rules on bullwhip effect on determine the order quantity with Silver Meal method. The supply chain model consists of two suppliers who are three retailers and one wholesaler. The bullwhip effect can be seen on the variability of wholesaler’s demand. Bullwhip analysis is conducted using a simulation method. This paper will also show the impact of higher variability and the impact of holding cost. The result showed that Silver Meal method will produced higher variability on wholesaler demand. Using Silver meal on higher variability demand will decrease the bullwhip effect by only 1%. By reducing the holding cost it will increase the bullwhip effect, however the total cost will be lower.

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Correspondence to I Gede Agus Widyadana .

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Irena, L., Widyadana, I.G.A. (2023). Simulation for Analyzing Effect of Silver Meal Lot Sizing Rules in Bullwhip Effect. In: Vasant, P., et al. Intelligent Computing and Optimization. ICO 2023. Lecture Notes in Networks and Systems, vol 854. Springer, Cham. https://doi.org/10.1007/978-3-031-50151-7_4

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