Abstract
Abstract The bullwhip effect (BWE) has a significant impact on increasing the total cost of a supply chain. Among the factors contributing to this effect, demand forecasting plays a vital role. This paper explores the role of demand forecasting accuracy on the amount of the BWE-related cost, taking an intervened demand process with stochastic perturbations into account. In this regard, a simulation study on a two-echelon supply chain is conducted to investigate the association between forecasting accuracy and the BWE-related costs. Subsequently, a new replenishment policy based on the classic order up to a target (OUT) policy is introduced to determine order values that mitigate the BWE-related costs in comparison to the classic OUT policy.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
