Bullwhip behaviour in the order-up-to policy with ARIMA demand

Bullwhip

OUT policy

ARMA demand

Eigenvalue analysis

2012

.Conference paper

4th World Production and Operations Management Conference, Amsterdam, Holland, June 1st - 5th, 11 pages.

Author

S.M. Disney

Published

June 2, 2012

Preprint Cite Stats

Abstract

This paper analyses the bullwhip effect produced by the Order-Up-To (OUT) policy for ARIMA demand processes. Areas in the parametrical space are identified where a bullwhip effect increases or decreases as function of the lead time. In remaining areas the bullwhip effect might be increasing, decreasing or fluctuating, depending upon the parameter values of the demand process.