ANALYTICAL AND SIMULATION MODELS FOR EVALUATING CASH-FLOW BULLWHIP IN SUPPLY CHAINS
Open Access
Author:
Shin, Hyunjong
Graduate Program:
Industrial Engineering
Degree:
Master of Science
Document Type:
Master Thesis
Date of Defense:
None
Committee Members:
Vittaldas V Prabhu, Thesis Advisor/Co-Advisor
Keywords:
Supply Chain Cash Flow Bullwhip
Abstract:
Inventory bullwhip in supply chain can have numerous adverse consequences and has been widely investigated over the last several years. Recent research has begun to investigate the plausibility bullwhip in cash-flow and has focused on developing theoretical models using analytical and simulation tools. This thesis extends these theoretical investigations by studying the effect of cash collection size and the variance in cash collection. In particular, a series of designed experiments are conducted using computer simulation of a four-tier supply chain in which cash collection is treated as a random variable. From the observation of these experiments, the size of cash collection is either irrelevant or marginally relevant to the cash flow bullwhip effect. Moreover, analytical models are developed to characterize the effect of variance in cash collection when it is has a normal or exponential distribution. No matter which distribution is assumed for the cash collection, the models tend to overestimate the cash flow bullwhip. When the cash collection follows normal distribution, the model over estimates cash flow bullwhip by approximately 30%. Whereas the model over estimates cash flow bullwhip by approximately 150% when the cash collection follows exponential distribution
