The aim of this paper is to quantify the benefit of demand and inventory smoothing in contrasting the extreme volatility and impetuous alteration of the market produced by the current economic recession. To do so we model a traditional supply chain and we test five settings of order smoothing under two shocks in the market demand, and we measure the effect in term of internal process benefits. Results highlight how a higher level of smoothing can generally improve the operational performance of the supply chain.
|Place of Publication||Tilburg|
|Number of pages||9|
|Publication status||Published - 2010|
|Name||CentER Discussion Paper|
- Bullwhip effect
- Inventory management
- Order up to
- Economic recession
Cannella, S., Ciancimino, E., & Ashayeri, J. (2010). On the Significance of Demand and Inventory Smoothing Interventions in Supply Chain. (CentER Discussion Paper; Vol. 2010-126). Operations research.