The implications of batching in the bullwhip effect and customer service of closed-loop supply chains

Batching is a well-known cause of the bullwhip effect. Despite being very common in many industries to leverage economies of scale, it has been little explored due to its nonlinear complexity. This work examines how order-quantity batching affects the performance of closed-loop supply chains, which...

Descripción completa

Detalles Bibliográficos
Autores: Ponte, Borja, Domínguez Cañizares, Roberto, Canella, Salvatore, Framiñán Torres, José Manuel
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2022
País:España
Institución:Universidad de Sevilla (US)
Repositorio:idUS. Depósito de Investigación de la Universidad de Sevilla
OAI Identifier:oai:idus.us.es:11441/135182
Acceso en línea:https://hdl.handle.net/11441/135182
https://doi.org/10.1016/j.ijpe.2021.108379
Access Level:acceso abierto
Palabra clave:Batching
Bullwhip effect
Closed-loop supply chains
Inventory control
Smoothing replenishment rule
Remanufacturing
id ES_134ed636a2c14d80f45921afc41e57e4
oai_identifier_str oai:idus.us.es:11441/135182
network_acronym_str ES
network_name_str España
repository_id_str
spelling The implications of batching in the bullwhip effect and customer service of closed-loop supply chainsPonte, BorjaDomínguez Cañizares, RobertoCanella, SalvatoreFramiñán Torres, José ManuelBatchingBullwhip effectClosed-loop supply chainsInventory controlSmoothing replenishment ruleRemanufacturingBatching is a well-known cause of the bullwhip effect. Despite being very common in many industries to leverage economies of scale, it has been little explored due to its nonlinear complexity. This work examines how order-quantity batching affects the performance of closed-loop supply chains, which are gaining importance as a result of their environmental and economic value. Specifically, we analyse a hybrid system with both manufacturing and remanufacturing operations. We observe that, when an order-up-to policy is used in the serviceable inventory, bullwhip is always an increasing function of the batch size. Nevertheless, when a smoothing replenishment rule is used, the closed-loop supply chain behaves differently for low and high volumes of returns due to the different degrees of uncertainty they convey. In the high-volume case, batches should also be as small as possible. In contrast, in the low-volume case, bullwhip can be mitigated by setting the batch size to a divisor of the mean production rate. However, this may lower the customer service level achieved. We also find that reducing manufacturing batch sizes should be prioritised over remanufacturing ones when both are large. In the light of our results, we finally provide professionals with specific suggestions on how to better manage closed-loop supply chains where goods are produced and delivered in batches.Ministerio de Ciencia e Innovación PID2019-108756RB-I00 y PID2020-117021GB-I00Junta de Andalucía P18-FR-1149 y US-126451Universidad de Sevilla V PPIT-USElsevierOrganización Industrial y Gestión de Empresas IMinisterio de Ciencia e Innovación (MICIN). EspañaJunta de AndalucíaUniversidad de Sevilla2022info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfapplication/pdfhttps://hdl.handle.net/11441/135182https://doi.org/10.1016/j.ijpe.2021.108379reponame:idUS. Depósito de Investigación de la Universidad de Sevillainstname:Universidad de Sevilla (US)InglésInternational Journal of Production Economics, 244, 108379.PID2019-108756RB-I00PID2020-117021GB-I00P18-FR-1149US-126451V PPIT-UShttps://www.sciencedirect.com/science/article/pii/S0925527321003558info:eu-repo/semantics/openAccessoai:idus.us.es:11441/1351822026-06-17T12:51:07Z
dc.title.none.fl_str_mv The implications of batching in the bullwhip effect and customer service of closed-loop supply chains
title The implications of batching in the bullwhip effect and customer service of closed-loop supply chains
spellingShingle The implications of batching in the bullwhip effect and customer service of closed-loop supply chains
Ponte, Borja
Batching
Bullwhip effect
Closed-loop supply chains
Inventory control
Smoothing replenishment rule
Remanufacturing
title_short The implications of batching in the bullwhip effect and customer service of closed-loop supply chains
title_full The implications of batching in the bullwhip effect and customer service of closed-loop supply chains
title_fullStr The implications of batching in the bullwhip effect and customer service of closed-loop supply chains
title_full_unstemmed The implications of batching in the bullwhip effect and customer service of closed-loop supply chains
title_sort The implications of batching in the bullwhip effect and customer service of closed-loop supply chains
dc.creator.none.fl_str_mv Ponte, Borja
Domínguez Cañizares, Roberto
Canella, Salvatore
Framiñán Torres, José Manuel
author Ponte, Borja
author_facet Ponte, Borja
Domínguez Cañizares, Roberto
Canella, Salvatore
Framiñán Torres, José Manuel
author_role author
author2 Domínguez Cañizares, Roberto
Canella, Salvatore
Framiñán Torres, José Manuel
author2_role author
author
author
dc.contributor.none.fl_str_mv Organización Industrial y Gestión de Empresas I
Ministerio de Ciencia e Innovación (MICIN). España
Junta de Andalucía
Universidad de Sevilla
dc.subject.none.fl_str_mv Batching
Bullwhip effect
Closed-loop supply chains
Inventory control
Smoothing replenishment rule
Remanufacturing
topic Batching
Bullwhip effect
Closed-loop supply chains
Inventory control
Smoothing replenishment rule
Remanufacturing
description Batching is a well-known cause of the bullwhip effect. Despite being very common in many industries to leverage economies of scale, it has been little explored due to its nonlinear complexity. This work examines how order-quantity batching affects the performance of closed-loop supply chains, which are gaining importance as a result of their environmental and economic value. Specifically, we analyse a hybrid system with both manufacturing and remanufacturing operations. We observe that, when an order-up-to policy is used in the serviceable inventory, bullwhip is always an increasing function of the batch size. Nevertheless, when a smoothing replenishment rule is used, the closed-loop supply chain behaves differently for low and high volumes of returns due to the different degrees of uncertainty they convey. In the high-volume case, batches should also be as small as possible. In contrast, in the low-volume case, bullwhip can be mitigated by setting the batch size to a divisor of the mean production rate. However, this may lower the customer service level achieved. We also find that reducing manufacturing batch sizes should be prioritised over remanufacturing ones when both are large. In the light of our results, we finally provide professionals with specific suggestions on how to better manage closed-loop supply chains where goods are produced and delivered in batches.
publishDate 2022
dc.date.none.fl_str_mv 2022
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/11441/135182
https://doi.org/10.1016/j.ijpe.2021.108379
url https://hdl.handle.net/11441/135182
https://doi.org/10.1016/j.ijpe.2021.108379
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv International Journal of Production Economics, 244, 108379.
PID2019-108756RB-I00
PID2020-117021GB-I00
P18-FR-1149
US-126451
V PPIT-US
https://www.sciencedirect.com/science/article/pii/S0925527321003558
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:idUS. Depósito de Investigación de la Universidad de Sevilla
instname:Universidad de Sevilla (US)
instname_str Universidad de Sevilla (US)
reponame_str idUS. Depósito de Investigación de la Universidad de Sevilla
collection idUS. Depósito de Investigación de la Universidad de Sevilla
repository.name.fl_str_mv
repository.mail.fl_str_mv
_version_ 1869403668627849216
score 15,198674

Similares en LA Referencia