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Minimum Reasonable Inventory and the Bullwhip Effect in an Automotive Enterprise: A "Foresight Vehicle" Demonstrator

Naim, Mohamed Mohamed, Disney, Stephen Michael and Evans, G. 2002. Minimum Reasonable Inventory and the Bullwhip Effect in an Automotive Enterprise: A "Foresight Vehicle" Demonstrator. Presented at: SAE 2002 World Congress & Exhibition, Detroit, MI, USA, 4 March 2002. SAE Technical Paper. Warrendale, PA: SAE International, pp. 196-203. 10.4271/2002-01-0461

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Demand amplification, or the bullwhip effect, has been identified as contributing to increased uncertainty in the supply chain and hence poor performance in terms of increased costs, protracted lead-times and poor customer service levels. This paper shows the application of a simulation based improvement activity focussing on the ordering decisions within a supply chain. An example of a preliminary business diagnostic and subsequent redesign in a four-tier automotive supply chain is presented including value-volume analysis, variability-volume analysis, part clustering and service level - stocking profiles. Specific improvements of up to 5 to 1 in stock holding are realized for continued customer service levels.

Item Type: Conference or Workshop Item (Paper)
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HE Transportation and Communications
T Technology > TL Motor vehicles. Aeronautics. Astronautics
T Technology > TS Manufactures
Publisher: SAE International
Date of First Compliant Deposit: 4 October 2018
Last Modified: 03 Mar 2020 02:31

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