Investigating the policies to reduce the whiplash phenomenon in the country's defense industry supply chains based on the system dynamics method

Document Type : Original Article

Authors

1 PhD student, Department of Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran

2 Assistant Professor, Department of Industrial Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran

3 Assistant Professor, Department of Business Management, Bonab Branch, Islamic Azad University, Bonab, Iran

Abstract

Since the whiplash phenomenon is an effective and decisive factor in supply chains; Therefore, an attempt is made to improve the performance of the defence industry of the Islamic Republic of Iran by controlling and reducing it. The current research tries to obtain an approach to improve the performance of supply chains. For this purpose, the effect of the whiplash phenomenon on multi-product, multi-stage and multi-level supply chains has been quantified based on time series, and a mathematical model has been obtained for it. In addition to that, other important and effective parameters such as the amount of target net storage have been studied. Also, the impact of the whiplash phenomenon on supply chains was obtained with the help of simulation and with the perspective of time series based on appropriate algorithms. To validate the findings, the results have been compared with a case study. Also, the effect of the whiplash phenomenon on the existing case study was optimized with the help of optimizer software, and as a result, it is found that the use of the time series model as a demand model and the daily inspection of distributors' inventory and the daily transportation of products to complete their inventory will reduce the whiplash effect. in the defence industry of the Islamic Republic of Iran. In addition, it was found that the daily inspection of the distributors' inventory and the shipment of the product on a daily basis to complete their inventory will have favourable effects.

Highlights

Jiao, J., Huang, S. & Soares, C. G. (2021). Viscous fluid–flexible structure interaction analysis on ship springing and whipping responses in regular waves, 106, 103354.

Boute, R. N., Disney, S. M., Lambrecht, M. R., & Van Houdt, B. (2007). An integrated production and inventory model to dampen upstream demand variability in the supply chain. European journal of operational research, 178(1), 121-142.

Cachon, G. P., & Fisher, M. (2000). Supply chain inventory management and the value of shared information. Management science, 46(8), 1032-1048.

Chilmon, B., & Tipi, N. S. (2020). Modelling and simulation considerations for an end-to-end supply chain system. Computers & Industrial Engineering, 150, 106870.

Dejonckheere, J., Disney, S. M., Lambrecht, M. R., & Towill, D. R. (2003). Measuring and avoiding the bullwhip effect: A control theoretic approach. European journal of operational research, 147(3), 567-590.

Disney, S. M., Towill, D. R. (2003). On the bullwhip and inventory variance produced by an ordering policy. Omega, 31(3), 157-167.

Fransoo, J. C., & Wouters, M. J. F. (2000). Measuring the bullwhip effect in the supply chain. Supply Chain Management: An International Journal.

Haeussler, S., Stefan, M., Schneckenreither, M., & Onay, A. (2021). The lead time updating trap: Analyzing human behavior in capacitated supply chains. International Journal of Production Economics, 234, 108034.

He, L., Xue, M., & Gu, B. (2020). Internet-of-things enabled supply chain planning and coordination with big data services: Certain theoretic implications. Journal of Management Science and Engineering, 5(1), 1-22.

Lee, H. L., Padmanabhan, V., & Whang, S. (1997). The bullwhip effect in supply chains. Sloan management review, 38, 93-102.

Ma, Y., & Li, W. (2019). Application and research of fractional differential equations in dynamic analysis of supply chain financial chaotic system. Chaos, Solitons & Fractals, 130, 109417.

Miragliotta, G. (2006). Layers and mechanisms: A new taxonomy for the bullwhip effect. International journal of production economics, 104(2), 365-381.

Pereira, M. M., & Frazzon, E. M. (2021). A data-driven approach to adaptive synchronization of demand and supply in omni-channel retail supply chains. International Journal of Information Management, 57, 102165.

Ponte, B., Cannella, S., Dominguez, R., Naim, M. M., & Syntetos, A. A. (2021). Quality grading of returns and the dynamics of remanufacturing. International Journal of Production Economics, 236, 108129.

Riddalls, C. E., & Bennett, S. (2001). The optimal control of batched production and its effect on demand amplification. International journal of production economics, 72(2), 159-168.

Taylor, D. H. (2000). Demand amplification: has it got us beat? International Journal of Physical Distribution & Logistics Management.

Wangphanich, P., Kara, S., & Kayis, B. (2010). Analysis of the bullwhip effect in multi-product, multi-stage supply chain systems–a simulation approach. International journal of production Research, 48(15), 4501-4517.

Warburton, R. D. H. (2004). An analytical investigation of the bullwhip effect. Production and operations management, 13(2), 150-160.

Yang, Y., Lin, J., Liu, G., & Zhou, L. (2021). The behavioural causes of bullwhip effect in supply chains: A systematic literature review. International Journal of Production Economics, 236, 108120.

Keywords

Main Subjects


Jiao, J., Huang, S. & Soares, C. G. (2021). Viscous fluid–flexible structure interaction analysis on ship springing and whipping responses in regular waves, 106, 103354.
Boute, R. N., Disney, S. M., Lambrecht, M. R., & Van Houdt, B. (2007). An integrated production and inventory model to dampen upstream demand variability in the supply chain. European journal of operational research, 178(1), 121-142.
Cachon, G. P., & Fisher, M. (2000). Supply chain inventory management and the value of shared information. Management science, 46(8), 1032-1048.
Chilmon, B., & Tipi, N. S. (2020). Modelling and simulation considerations for an end-to-end supply chain system. Computers & Industrial Engineering, 150, 106870.
Dejonckheere, J., Disney, S. M., Lambrecht, M. R., & Towill, D. R. (2003). Measuring and avoiding the bullwhip effect: A control theoretic approach. European journal of operational research, 147(3), 567-590.
Disney, S. M., Towill, D. R. (2003). On the bullwhip and inventory variance produced by an ordering policy. Omega, 31(3), 157-167.
Fransoo, J. C., & Wouters, M. J. F. (2000). Measuring the bullwhip effect in the supply chain. Supply Chain Management: An International Journal.
Haeussler, S., Stefan, M., Schneckenreither, M., & Onay, A. (2021). The lead time updating trap: Analyzing human behavior in capacitated supply chains. International Journal of Production Economics, 234, 108034.
He, L., Xue, M., & Gu, B. (2020). Internet-of-things enabled supply chain planning and coordination with big data services: Certain theoretic implications. Journal of Management Science and Engineering, 5(1), 1-22.
Lee, H. L., Padmanabhan, V., & Whang, S. (1997). The bullwhip effect in supply chains. Sloan management review, 38, 93-102.
Ma, Y., & Li, W. (2019). Application and research of fractional differential equations in dynamic analysis of supply chain financial chaotic system. Chaos, Solitons & Fractals, 130, 109417.
Miragliotta, G. (2006). Layers and mechanisms: A new taxonomy for the bullwhip effect. International journal of production economics, 104(2), 365-381.
Pereira, M. M., & Frazzon, E. M. (2021). A data-driven approach to adaptive synchronization of demand and supply in omni-channel retail supply chains. International Journal of Information Management, 57, 102165.
Ponte, B., Cannella, S., Dominguez, R., Naim, M. M., & Syntetos, A. A. (2021). Quality grading of returns and the dynamics of remanufacturing. International Journal of Production Economics, 236, 108129.
Riddalls, C. E., & Bennett, S. (2001). The optimal control of batched production and its effect on demand amplification. International journal of production economics, 72(2), 159-168.
Taylor, D. H. (2000). Demand amplification: has it got us beat? International Journal of Physical Distribution & Logistics Management.
Wangphanich, P., Kara, S., & Kayis, B. (2010). Analysis of the bullwhip effect in multi-product, multi-stage supply chain systems–a simulation approach. International journal of production Research, 48(15), 4501-4517.
Warburton, R. D. H. (2004). An analytical investigation of the bullwhip effect. Production and operations management, 13(2), 150-160.
Yang, Y., Lin, J., Liu, G., & Zhou, L. (2021). The behavioural causes of bullwhip effect in supply chains: A systematic literature review. International Journal of Production Economics, 236, 108120.