Modelling the Bullwhip Effect Dampening Practices in a Limited Capacity Production Network

This work infers on the conjoint adoption of collaboration practices and replenishment rules as bullwhip dampening techniques in a limited capacity production network. Continuous time differential equation methodology is adopted to model three supply chain configurations. Results show that the conditio sine qua non for long-term capacity strategy is the management and control of information asynchronies, provided by collaboration practices and ad-hoc decision policies. Furthermore the study reveals the phenomenon of bullwhip rough dampening.