Information transformation in a supply chain: A simulation study

Gang Li, Shouyang Wang, Hong Yan, Gang Yu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

36 Citations (Scopus)

Abstract

We study the information transformation by simulating a multi-stage supply chain when the end customer's demand is a general autoregressive integrated moving average (ARIMA) process, and the information, represented in the form of orders, is propagated from downstream to upstream in the supply chain. Our simulation results indicate several important and novel phenomena that need further theoretical analysis: (1) the anti-bullwhip effect and the transition from the regular bullwhip effect; (2) the trend of information transformation at higher stages of a supply chain; (3) the impact of lead-time on information transformation and the so-called 'lead-time paradox'. In this paper, we will demonstrate these aspects via extensive computational experiments.
Original languageEnglish
Pages (from-to)707-725
Number of pages19
JournalComputers and Operations Research
Volume32
Issue number3
DOIs
Publication statusPublished - 1 Mar 2005

ASJC Scopus subject areas

  • Computer Science(all)
  • Modelling and Simulation
  • Management Science and Operations Research

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