A Simulation Study of Bullwhip Effect in a Closed-Loop Supply Chain with Fuzzy Demand and Fuzzy Collection Rate under Possibility Constraints
Along with forward supply chain organization needs
to consider the impact of reverse logistics due to its economic
advantage, social awareness and strict legislations. In this paper, we
develop a system dynamics framework for a closed-loop supply
chain with fuzzy demand and fuzzy collection rate by incorporating
product exchange policy in forward channel and various recovery
options in reverse channel. The uncertainty issues associated with
acquisition and collection of used product have been quantified using
possibility measures. In the simulation study, we analyze order
variation at both retailer and distributor level and compare bullwhip
effects of different logistics participants over time between the
traditional forward supply chain and the closed-loop supply chain.
Our results suggest that the integration of reverse logistics can reduce
order variation and bullwhip effect of a closed-loop system. Finally,
sensitivity analysis is performed to examine the impact of various
parameters on recovery process and bullwhip effect.
[1] S. Pokharel and A. Mutha, "Perspectives in reverse logistics: A review",
Resources, Conservation and Recycling , pp. 175-182, 2009.
[2] M. Pagell, Z. Wu and N. Nagesh, "The supply chain implications of
recycling," Business Horizon, vol. 50, pp. 133-143, 2007.
[3] G. Ferrer and J. M. Swaminathan, "Production, Manufacturing and
Logistics Managing new and differentiated remanufactured products,"
European Journal of Operational Research, vol. 203, pp. 370-379,
2010.
[4] M. Gallo, L. Guerra and G. Guizzi, "Hybrid Remanufacturing/
Manufacturing Systems: secondary markets issues and opportunities",
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS ,vol. 6, no.
1, 31-41,2009.
[5] M. Fleischmann, R. Dekker, E. van der Laan, J. van Numen, L. van
Wassenhove and J. Ruwaard, "Quantitative models for reverse logistics:
A review," European Journal of Operational Research, vol. 103, pp. 1-
17, 1997.
[6] T. Spengler and M. Schroter, "Strategic management of spare parts in
closed-loop supply chains: a system dynamics approach," Interfaces,
vol. 33, no. 6, pp. 7-17, 2003.
[7] P. Georgiadis and D. Vlachos, "The effect of environmental parameters
on product recovery," European Journal of Operational Research, vol.
157, no. 2, pp. 449-464, 2004.
[8] H. Lee, P. Padmanabhan, and S. Whang, "The bullwhip effect in supply
chains", Sloan Management Review , vol. 38,pp. 93-102,1997
[9] C. Carlsson and R. Fuller, "Fuzzy Approach to the Bullwhip
Effect.",Proceedings of the 15th European Meeting on Cybernetics and
Systems Research, (pp. 228 - 233). Vienna,2000.
[10] L. Zhou and S. Disney, "Bullwhip and inventory variance in a closed
loop supply chain," OR Spectrum, vol. 28, pp. 127-149, 2006.
[11] R. K. Pati, P. Vrat and P. Kumar, "Quantifying bullwhip effect in a
closed loop supply chain," OPSEARCH, vol. 47, no. 4, pp. 231-253,
2010.
[12] D. Qingli, S. Hao, and Z Hui, "Simulation of remanufacturing in reverse
supply chain based on system dynamics," in IEEE, Service Systems and
Service Management, 2008 International Conference, Melbourne, 2008,
pp. 1-6.
[13] D. Das and P. Dutta, "A Comparative Study of Bullwhip Effect in a
Multi-Echelon Forward-Reverse Supply Chain", presented at The
Pyrenees International Workshop on Statistics, Probability and
Operations Research, Jaca, Spain, Sep. 13-16, 2011.
[14] L. Zadeh," Fuzzy sets. Information and Control", vol. 8, pp. 338-
353,1965
[15] H. J. Zimmermann, "Fuzzy Set Theory and its Applications," 2nd ed,
Kluwer ademic Publisher, 1996.
[16] D. Dubois and H. Prade, "Ranking fuzzy numbers in the setting of
possibility theory," Information Sciences ,vol. 30, pp. 183-224, 1983.
[17] K. Maity and M. Maiti, "Possibility and necessity constraints and their
defuzzificationÔÇöA multi-item production-inventory scenario via optimal
control theory," European Journal of Operational Research , vol. 177,
pp. 882-896, 2007
[18] F. Chen, Z. Drezner, J. K. Ryan and D. Simchi-Levi, "Quantifying the
Bullwhip Effect in a simple supply chain: The impact of forecasting,
lead times, and information," Management Science, vol. 46, no. 3, pp.
436-443, 2000.
[1] S. Pokharel and A. Mutha, "Perspectives in reverse logistics: A review",
Resources, Conservation and Recycling , pp. 175-182, 2009.
[2] M. Pagell, Z. Wu and N. Nagesh, "The supply chain implications of
recycling," Business Horizon, vol. 50, pp. 133-143, 2007.
[3] G. Ferrer and J. M. Swaminathan, "Production, Manufacturing and
Logistics Managing new and differentiated remanufactured products,"
European Journal of Operational Research, vol. 203, pp. 370-379,
2010.
[4] M. Gallo, L. Guerra and G. Guizzi, "Hybrid Remanufacturing/
Manufacturing Systems: secondary markets issues and opportunities",
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS ,vol. 6, no.
1, 31-41,2009.
[5] M. Fleischmann, R. Dekker, E. van der Laan, J. van Numen, L. van
Wassenhove and J. Ruwaard, "Quantitative models for reverse logistics:
A review," European Journal of Operational Research, vol. 103, pp. 1-
17, 1997.
[6] T. Spengler and M. Schroter, "Strategic management of spare parts in
closed-loop supply chains: a system dynamics approach," Interfaces,
vol. 33, no. 6, pp. 7-17, 2003.
[7] P. Georgiadis and D. Vlachos, "The effect of environmental parameters
on product recovery," European Journal of Operational Research, vol.
157, no. 2, pp. 449-464, 2004.
[8] H. Lee, P. Padmanabhan, and S. Whang, "The bullwhip effect in supply
chains", Sloan Management Review , vol. 38,pp. 93-102,1997
[9] C. Carlsson and R. Fuller, "Fuzzy Approach to the Bullwhip
Effect.",Proceedings of the 15th European Meeting on Cybernetics and
Systems Research, (pp. 228 - 233). Vienna,2000.
[10] L. Zhou and S. Disney, "Bullwhip and inventory variance in a closed
loop supply chain," OR Spectrum, vol. 28, pp. 127-149, 2006.
[11] R. K. Pati, P. Vrat and P. Kumar, "Quantifying bullwhip effect in a
closed loop supply chain," OPSEARCH, vol. 47, no. 4, pp. 231-253,
2010.
[12] D. Qingli, S. Hao, and Z Hui, "Simulation of remanufacturing in reverse
supply chain based on system dynamics," in IEEE, Service Systems and
Service Management, 2008 International Conference, Melbourne, 2008,
pp. 1-6.
[13] D. Das and P. Dutta, "A Comparative Study of Bullwhip Effect in a
Multi-Echelon Forward-Reverse Supply Chain", presented at The
Pyrenees International Workshop on Statistics, Probability and
Operations Research, Jaca, Spain, Sep. 13-16, 2011.
[14] L. Zadeh," Fuzzy sets. Information and Control", vol. 8, pp. 338-
353,1965
[15] H. J. Zimmermann, "Fuzzy Set Theory and its Applications," 2nd ed,
Kluwer ademic Publisher, 1996.
[16] D. Dubois and H. Prade, "Ranking fuzzy numbers in the setting of
possibility theory," Information Sciences ,vol. 30, pp. 183-224, 1983.
[17] K. Maity and M. Maiti, "Possibility and necessity constraints and their
defuzzificationÔÇöA multi-item production-inventory scenario via optimal
control theory," European Journal of Operational Research , vol. 177,
pp. 882-896, 2007
[18] F. Chen, Z. Drezner, J. K. Ryan and D. Simchi-Levi, "Quantifying the
Bullwhip Effect in a simple supply chain: The impact of forecasting,
lead times, and information," Management Science, vol. 46, no. 3, pp.
436-443, 2000.
@article{"International Journal of Engineering, Mathematical and Physical Sciences:53607", author = "Debabrata Das and Pankaj Dutta", title = "A Simulation Study of Bullwhip Effect in a Closed-Loop Supply Chain with Fuzzy Demand and Fuzzy Collection Rate under Possibility Constraints", abstract = "Along with forward supply chain organization needs
to consider the impact of reverse logistics due to its economic
advantage, social awareness and strict legislations. In this paper, we
develop a system dynamics framework for a closed-loop supply
chain with fuzzy demand and fuzzy collection rate by incorporating
product exchange policy in forward channel and various recovery
options in reverse channel. The uncertainty issues associated with
acquisition and collection of used product have been quantified using
possibility measures. In the simulation study, we analyze order
variation at both retailer and distributor level and compare bullwhip
effects of different logistics participants over time between the
traditional forward supply chain and the closed-loop supply chain.
Our results suggest that the integration of reverse logistics can reduce
order variation and bullwhip effect of a closed-loop system. Finally,
sensitivity analysis is performed to examine the impact of various
parameters on recovery process and bullwhip effect.", keywords = "Bullwhip Effect, Fuzzy Possibility Measures,
Reverse Supply Chain, System Dynamics.", volume = "6", number = "4", pages = "410-8", }
