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URN etd-0730104-150752 Statistics This thesis had been viewed 2722 times. Download 3208 times. Author Chia-yen Chang Author's Email Address No Public. Department Management Business Administration Year 2004 Semester 2 Degree Master Type of Document Master's Thesis Language English Page Count 88 Title The Strategies to Counter the Bullwhip Effect: OEM/ODM as
Keyword supply chains bullwhip effect inventory management OEM/ODM OEM/ODM inventory management bullwhip effect supply chains Abstract Supply chains often involve linkages among many firms. Each firm depends on
other firms for materials, components, services, and information needed to supply its immediate customer in the chain. Because firms typically are owned and managed independently, the actions of downstream members (toward the ultimate user of the product or service) of the supply chain can adversely affect the operations of upstream members (toward the lowest tier in the supply chain). Minor disturbances in end demand can translate into huge disturbances at upstream suppliers. These dynamics are often referred as the bullwhip effect. This bullwhip effect has traditionally been accepted as an inevitable part of doing business in the electronics industry. The bullwhip effect occurs when demand order variabilities in the supply chain are amplified as they moved up the supply chain. Distorted information from one end of a supply chain to the other can lead to tremendous inefficiencies, including: poor product forecasts, piles of inventory, poor customer service due to unavailable
products or long backlog, misguided capacity plans, and missed production schedules.
Bullwhip effect exists in every manufacturing industry. When a downstream operation places an order, the upstream manager processes that piece of information as a signal about future product demand. Based on this signal, the upstream manager readjusts his or her demand forecasts and, in turn, the orders placed with the suppliers of the upstream operation. Therefore, the orders placed by the more upstream entity in the supply chain have much greater variability. Distorted information has led every entity in the supply chain to stockpile because of the high degree of demand uncertainties and variabilities.
Companies can effectively counteract the bullwhip effect by thoroughly understanding its underlying causes. Therefore, the purposes of this study are: First, to explore the causes of bullwhip effect and countermeasures by literature review. Second, using empirical study to verify the relative importance of factors causing the bullwhip effect and countermeasures. Third, based on the result of literature review and empirical study, this study will poses solid suggestions to the manufacturers for improving the bullwhip effect in their supply chain.
The causes of the bullwhip effect identified by authors include: demand
forecast updating, order batching, price fluctuation, and rationing and shortage
gaming. This study will use OEM/ODM manufacturers as empirical research subjects.
The empirical data will collect by using a mail questionnaire and will be analyzed by using AHP (Analytical Hierarchical Process Method).
Along with the globalization, enterprise must collaborate with the supply chain
network partners. So it is a necessary element for survival to well operate in the supply chain to quickly get in touch with the market, to decline the inventory risk and cost presses and to quick response. In order to satisfy the consumer requirement, promise to fulfill all orders on time, quickly respond the market, avoid the lack of materials or insufficient capability. Improving the bullwhip effect of the supply chain,the Vendor Managed Inventory (VMI) is the best method. It can share the inventory information with vendor and purchaser to manage the customer’s inventory level.
Advisor Committee none - advisor
Dong-sheng Chang - co-chair
Hao-erl Yang - co-chair
Files Date of Defense 2004-07-08 Date of Submission 2004-07-30