Abstract
This paper discusses how the elasticity of final demand influences the bullwhip amplification when sudden economic changes appear along the entire multi-level supply chain. Increased variability of prices does not affect added value substantially in a supply chain where the price elasticity of demand is small (around 0.1) but with an elasticity of 10 or more, high price variances may result in significant losses. A traditional model of dynamic supply chain structure is used for our study, based on the seminal work of Forrester. A simulation platform for supply chain management with stochastic demand has been developed to study such a phenomenon. Vensim® simulation software was used for developing the appropriate supply chain dynamic models. The aim of our study is to gain a deeper insight into the processes in a logistic chain, at different elasticities of price demand.
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.
