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Simulation-Based Analysis of the Bullwhip Effect under Different Information Sharing Strategies

By Jurijs Merkurjevs, Jūlija Petuhova, Rik Van Landeghem and Steven Vansteenkiste


This paper describes the impact of two different information sharing strategies – decentralized and centralized information – combined with two inventory control policies – min-max and stock-to-demand inventory control – on the bullwhip effect. To investigate and measure this impact, simulation models are developed using the Arena 5.0 software package for a four-stage supply chain, consisting of a single retailer, wholesaler, distributor and manufacturer. The experiments with the developed models are described and the results are analyzed

Topics: Bullwhip effect, Supply chain simulation, Information sharing strategies, Inventory control policies
Publisher: SCS-Europe BVBA
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