Contingency Between Elasticityof Demand and Bullwhip Effectin Logistics Chains
- Francisco Campuzano-Bolarín 1
- Marija Bogataj
- Lorenzo Ros-McDonnell 1
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1
Universidad Politécnica de Cartagena
info
- Suresh P. Sethi (dir. congr.)
- Marija Bogataj (dir. congr.)
- Lorenzo Ros-McDonnell (dir. congr.)
Editorial: Springer-Verlag Reino Unido
ISBN: 978-1-4471-2321-7
Año de publicación: 2012
Páginas: 201-208
Tipo: Capítulo de Libro
Resumen
This paper discusses how the elasticity of final demand influences the bullwhip amplification when sudden economic changes appear along the entire multi-level supply chain. Increased variability of prices does not affect added value substantially in a supply chain where the price elasticity of demand is small(around 0.1) but with an elasticity of 10 or more, high price variances may result in significant losses. A traditional model of dynamic supply chain structure is used for our study, based on the seminal work of Forrester. A simulation platform for supplychain management with stochastic demand has been developed to study such a phenomenon. Vensim simulation software was used for developing the appropriate supply chain dynamic models. The aim of our study is to gain a deeper insight into theprocesses in a logistic chain, at different elasticities of price demand.