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Optimal forecasting technique in reducing supply chain amplification

  • Xun Wang*
  • , Jing Wang
  • *Corresponding author for this work
  • Beihang University

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

Abstract

This paper investigates the optimal forecasting method in reducing supply chain amplification, a.k.a., the Bullwhip Effect. By using a simple replenishing policy and solving Stein Matrix Equations, the relationship between input and output covariance matrices is derived. Both analytical and simulational results support the opinion that proportional forecasting is superior in bullwhip mitigation. There exists trade-off in reducing variance amplifications in order and inventory. For different control objectives, we propose optimal proportional controllers.

Original languageEnglish
Title of host publicationAdvances in Computing, Control and Industrial Engineering
Pages362-367
Number of pages6
DOIs
StatePublished - 2012
Event2012 3rd International Conference on Computing, Control and Industrial Engineering, CCIE 2012 - Wuhan, China
Duration: 27 Oct 201228 Oct 2012

Publication series

NameApplied Mechanics and Materials
Volume235
ISSN (Print)1660-9336
ISSN (Electronic)1662-7482

Conference

Conference2012 3rd International Conference on Computing, Control and Industrial Engineering, CCIE 2012
Country/TerritoryChina
CityWuhan
Period27/10/1228/10/12

Keywords

  • Bullwhip effect
  • Forecasting
  • Inventory control

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