Supply Chain: The Bullwhip Effect and Effective Ordering System for Optimal Operation Schedule

Abstract

Consumer awareness of proper handling of shipments as well as the increasing prevalence of product resale in stores. The purpose of this study is to analyze the supply chain of goods to ensure that goods are delivered on time and in the right quantity to prevent misinformation lead time and to improve the delivery system. The bullwhip effect is a term used to describe how supply chain variability increases over time. The impact of the Bullwhip can be reduced in the supply chain at the relevant level, allowing the collection of useful information that can then be combined to mitigate the Bullwhip effect and improve business operations. Bullwhip Effect was observed in Lima as a result of data elaboration and in-depth analysis, according to those results.retail and at Distributors, caused by: According to unconfirmed information about retailer-distributor transactions, the lead time for the current transaction is 5 days, but it can be shortened to 1 day in the future because of the high probability that the product will be damaged during the trip. Based on the results of those calculations, it was determined that the reorder system had given more optimal results, indicated by smaller N and T values compared to the initial conditions, which made inventory costs more accurate than ever before.

Keywords : Supply Chain, Bullwhip Effect, Inventory