ABSTRACT
This study evaluates the bullwhip effect performance of a four-stage serial supply chain under Order-Up-To (OUT) and Statistical Process Control (SPC)-based periodic review inventory control policies using simulation. The performance of the supply chain is evaluated in terms of order rate variance ratio and bullwhip slope under four customer demand models such variance lens, shock lens, filter lens and combined shock and filter lens. The effect of sharing of real-time customer demand among the other members of the supply chain is also studied. The statistical analysis of results shows that for the supply chain, the bullwhip slope under OUT policy is significantly higher than the bullwhip slope under the SPC-based policy.
