Analysis of RHF contracts under highly variable externalised demand

Patrick M. Walsh, Peter A. Williams, Cathal Heavey

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

A discrete-event simulation model of a supply chain has been developed to evaluate operational performance of sharing uncertain information on upcoming demand between an Original Equipment Manufacturer (OEM) and a Contract Manufacturer (CM) under a formal Rolling Horizon Flexibility (RHF) contract in a four node supply chain. There are two types of RHF contracts evaluated, that is, RHF contract with constant flexibility and decreasing flexibility bounds. The demand is externalised (that is, the OEM receives the demand), stochastic and is generated according to the gamma distribution. This paper reports on analysis of RHF contracts operating with coefficients of variation (CV) of demand up to 2.00. Analysis of the interaction of RHF contacts with OEM forecasting and the impact a RHF contract has on the transmission of the bullwhip effect are reported here.

Original languageEnglish
Title of host publication12th IFAC Symposium on Information Control Problems in Manufacturing, INCOM 2006, and Associated Industrial Meetings
Subtitle of host publicationEMM'2006, BPM'2006, JT'2006
PublisherIFAC Secretariat
EditionPART 1
ISBN (Print)9783902661043
DOIs
Publication statusPublished - 2006

Publication series

NameIFAC Proceedings Volumes (IFAC-PapersOnline)
NumberPART 1
Volume12
ISSN (Print)1474-6670

Keywords

  • Bullwhip
  • Discrete-event
  • Performance analysis
  • RHF contract
  • Simulation

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