Managing Bullwhip Effect in Acoustic Guitar Manufacturing: A Case Study Through Vendor Managed Inventory (VMI) Approach
The Bullwhip Effect is a condition where differences arise between the supply and demand numbers within supply chain management. This acoustic guitar manufacturing faces challenges resulting from demand fluctuations, supply chain complexities, and inventory inefficiencies, which often lead to the Bu...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
EDP Sciences
2024-01-01
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| Series: | E3S Web of Conferences |
| Subjects: | |
| Online Access: | https://www.e3s-conferences.org/articles/e3sconf/pdf/2024/14/e3sconf_foitic2024_01005.pdf |
| _version_ | 1827352570523287552 |
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| author | Muhammad Baisa Said Afdil Reynaldi Muhammad Imran Arif |
| author_facet | Muhammad Baisa Said Afdil Reynaldi Muhammad Imran Arif |
| author_sort | Muhammad Baisa Said |
| collection | DOAJ |
| description | The Bullwhip Effect is a condition where differences arise between the supply and demand numbers within supply chain management. This acoustic guitar manufacturing faces challenges resulting from demand fluctuations, supply chain complexities, and inventory inefficiencies, which often lead to the Bullwhip Effect. The company experiences fluctuations in both demand and supply, consequently leading to inventory accumulation in its warehouses. This study aims to reduce the Bullwhip Effect score in acoustic guitar manufacturing by implementing the Vendor Managed Inventory (VMI) method. VMI acts as a regulatory mechanism during distribution, ensuring better control over dispatched products by incorporating forecasting techniques such as single exponential smoothing, double exponential smoothing, and linear regression. Before implementing VMI, the Bullwhip Effect scores were 1.42 for Retailer 1 and 1.69 for Retailer 2. After the successful implementation of VMI, significant reductions in the Bullwhip Effect scores were observed, with scores of 0.48 and 0.91 recorded for Retailer 1 and Retailer 2, respectively. |
| first_indexed | 2024-03-08T03:07:48Z |
| format | Article |
| id | doaj.art-5fe4c7d52251499a88a3f85b893c58e2 |
| institution | Directory Open Access Journal |
| issn | 2267-1242 |
| language | English |
| last_indexed | 2024-03-08T03:07:48Z |
| publishDate | 2024-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | E3S Web of Conferences |
| spelling | doaj.art-5fe4c7d52251499a88a3f85b893c58e22024-02-13T08:27:42ZengEDP SciencesE3S Web of Conferences2267-12422024-01-014840100510.1051/e3sconf/202448401005e3sconf_foitic2024_01005Managing Bullwhip Effect in Acoustic Guitar Manufacturing: A Case Study Through Vendor Managed Inventory (VMI) ApproachMuhammad Baisa Said0Afdil Reynaldi Muhammad1Imran Arif2Department of Industrial Engineering, Institut Teknologi NasionalDepartment of Industrial Engineering, Institut Teknologi NasionalDepartment of Industrial Engineering, Institut Teknologi NasionalThe Bullwhip Effect is a condition where differences arise between the supply and demand numbers within supply chain management. This acoustic guitar manufacturing faces challenges resulting from demand fluctuations, supply chain complexities, and inventory inefficiencies, which often lead to the Bullwhip Effect. The company experiences fluctuations in both demand and supply, consequently leading to inventory accumulation in its warehouses. This study aims to reduce the Bullwhip Effect score in acoustic guitar manufacturing by implementing the Vendor Managed Inventory (VMI) method. VMI acts as a regulatory mechanism during distribution, ensuring better control over dispatched products by incorporating forecasting techniques such as single exponential smoothing, double exponential smoothing, and linear regression. Before implementing VMI, the Bullwhip Effect scores were 1.42 for Retailer 1 and 1.69 for Retailer 2. After the successful implementation of VMI, significant reductions in the Bullwhip Effect scores were observed, with scores of 0.48 and 0.91 recorded for Retailer 1 and Retailer 2, respectively.https://www.e3s-conferences.org/articles/e3sconf/pdf/2024/14/e3sconf_foitic2024_01005.pdfbullwhip effectvendor managed inventory (vmi)forecastinginventory |
| spellingShingle | Muhammad Baisa Said Afdil Reynaldi Muhammad Imran Arif Managing Bullwhip Effect in Acoustic Guitar Manufacturing: A Case Study Through Vendor Managed Inventory (VMI) Approach E3S Web of Conferences bullwhip effect vendor managed inventory (vmi) forecasting inventory |
| title | Managing Bullwhip Effect in Acoustic Guitar Manufacturing: A Case Study Through Vendor Managed Inventory (VMI) Approach |
| title_full | Managing Bullwhip Effect in Acoustic Guitar Manufacturing: A Case Study Through Vendor Managed Inventory (VMI) Approach |
| title_fullStr | Managing Bullwhip Effect in Acoustic Guitar Manufacturing: A Case Study Through Vendor Managed Inventory (VMI) Approach |
| title_full_unstemmed | Managing Bullwhip Effect in Acoustic Guitar Manufacturing: A Case Study Through Vendor Managed Inventory (VMI) Approach |
| title_short | Managing Bullwhip Effect in Acoustic Guitar Manufacturing: A Case Study Through Vendor Managed Inventory (VMI) Approach |
| title_sort | managing bullwhip effect in acoustic guitar manufacturing a case study through vendor managed inventory vmi approach |
| topic | bullwhip effect vendor managed inventory (vmi) forecasting inventory |
| url | https://www.e3s-conferences.org/articles/e3sconf/pdf/2024/14/e3sconf_foitic2024_01005.pdf |
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