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Controlling the bullwhip effect and reducing the propagated inventory levels throughout the supply chain layers has an important role in reducing the total inventory costs of a supply chain. In this study, an optimal controller that considers demand as control variable is designed to dampen propagated inventory fluctuations for each node throughout the supply chain network. The model proves to be very useful in revealing the dynamic characteristics of the chain and provides a proper interface to study decisions taken into account at each node of the supply chain in different periods by decision makers (DMs). In the proposed approach, two feedback loops and online updated values of net stock quantities are used for calculation of the orders. To investigate the efficiency of the proposed approach, a real case of bicycle industry is conducted. The acquired results justify the efficiency of the proposed approach in controlling and dampening the bullwhip effect and reducing inventory levels, net stock quantities and inventory attributed costs throughout the supply chain network layers.
Sabbaghnia, Ali 1 ; Razmi, Jafar 1 ; Babazadeh, Reza 1 ; Moshiri, Behzad 1
@article{RO_2018__52_4-5_1377_0,
author = {Sabbaghnia, Ali and Razmi, Jafar and Babazadeh, Reza and Moshiri, Behzad},
title = {Reducing the {Bullwhip} effect in a supply chain network by application of optimal control theory},
journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
pages = {1377--1396},
publisher = {EDP-Sciences},
volume = {52},
number = {4-5},
year = {2018},
doi = {10.1051/ro/2018025},
mrnumber = {3884160},
zbl = {1414.49043},
language = {en},
url = {http://geodesic.mathdoc.fr/articles/10.1051/ro/2018025/}
}
TY - JOUR AU - Sabbaghnia, Ali AU - Razmi, Jafar AU - Babazadeh, Reza AU - Moshiri, Behzad TI - Reducing the Bullwhip effect in a supply chain network by application of optimal control theory JO - RAIRO - Operations Research - Recherche Opérationnelle PY - 2018 SP - 1377 EP - 1396 VL - 52 IS - 4-5 PB - EDP-Sciences UR - http://geodesic.mathdoc.fr/articles/10.1051/ro/2018025/ DO - 10.1051/ro/2018025 LA - en ID - RO_2018__52_4-5_1377_0 ER -
%0 Journal Article %A Sabbaghnia, Ali %A Razmi, Jafar %A Babazadeh, Reza %A Moshiri, Behzad %T Reducing the Bullwhip effect in a supply chain network by application of optimal control theory %J RAIRO - Operations Research - Recherche Opérationnelle %D 2018 %P 1377-1396 %V 52 %N 4-5 %I EDP-Sciences %U http://geodesic.mathdoc.fr/articles/10.1051/ro/2018025/ %R 10.1051/ro/2018025 %G en %F RO_2018__52_4-5_1377_0
Sabbaghnia, Ali; Razmi, Jafar; Babazadeh, Reza; Moshiri, Behzad. Reducing the Bullwhip effect in a supply chain network by application of optimal control theory. RAIRO - Operations Research - Recherche Opérationnelle, Tome 52 (2018) no. 4-5, pp. 1377-1396. doi: 10.1051/ro/2018025
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