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Friday, July 7 • 11:18am - 11:36am
Interactive bullwhip effect exploration using SCperf and Shiny

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Abstract: The bullwhip effect, an increase in demand variability along the supply chain, is pointed out as a key driver of inefficiencies associated with the supply chain. In the presence of this phenomenon, participants involved in the manufacture of a product and its distribution to final customer face unstable production schedules or excessive inventory.
Although there are several implementations illustrating the bullwhip effect, it still remains difficult for scholars and supply chain practitioners to understand and quantify its real effect in the suply chain performance.
Using the SCperf package and Shiny app, we have developed an interactive bullwhip game which follows the standard setup of the classic “Beer Distribution Game” (MIT). Our web interface illustrates the distribution process of a multi-echelon supply chain, the goal of the game being to minimize costs along the chain while satisfying service level requirements.
Our open source application is user friendly, easily supports sophisticated forecasting techniques and inventory models and does not require any R experience.
In this talk, we describe the underlying design of the game and show by means of examples how changing the forecasting method or tuning the parameters of the replenishment policy (lead time, customer service level, etc) induces or reduces the bullwhip effect. This application may be adapted to become a learning tool in classroom and training programs.
Keywords: bullwhip effect, beergame, inventory, SCperf, shiny

avatar for Marlene Silva-Marchena

Marlene Silva-Marchena

Independent consultant
I am a Business Intelligence consultant. I work with database creation and advanced analytics. I transform information into strategic knowledge to help companies to optimize business decisions. My interests include statistical modelling, programming, operational research and risk... Read More →

Friday July 7, 2017 11:18am - 11:36am
2.02 Wild Gallery