REDUCING OF BULLWHIP EFFECT USING VENDOR MANAGED INVENTORY (VMI) METHOD ON FRESH WATER INDUSTRY
The occurrence of distortion of information in the supply chain management of manufacturing companies causes a bullwhip effect. This happens because the number of requests and sales from upstream to downstream is getting higher. The company will produce more to avoid stock shortages. However, in reality there is a big difference between demand and sales, causing some losses for the company. In this study, the Vendor Managed Inventory (VMI) method was used to reduce the bullwhip effect. The analysis was carried out using the Exponential Smoothing Model and Economic Order Quantity. The data used is demand data for 2020 and 2021. The result is that the bullwhip effect that occurred previously was 1.22421, then after the VMI method was applied the value decreased and only became 0.4957. So that the VMI method can be used to minimize the occurrence of the bullwhip effect in the supply chain of manufacturing companies.
Dai, Jianhua, Shengbo Peng, and Shibiao Li. 2017. Mitigation of Bullwhip Effect in Supply Chain Inventory Management Model. Procedia Engineering 174: 1229–34.
Fradinata, E., S. Suthummanon, W. Suntiamorntut, and Muhamad Mat Noor. 2019. Compare the Forecasting Method of Artificial Neural Network and Support Vector Regression Model to Measure the Bullwhip Effect in Supply Chain. Journal of Mechanical Engineering and Sciences 13 (2): 4816–34.
Jay, Heizer, and Barry Render. 2008. Manajemen Operasi. 9th Ed. Salemba Empat. Jakarta.
Lee, Hau L., V. Padmanabhan, and Seungjin Whang. 1997. The Bullwhip Effect in Supply Chains. SLOAN MANAGEMENT REVIEW.
Ma, Yungao, Nengmin Wang, Zhengwen He, Jizhou Lu, and Huigang Liang. 2015. Analysis of the Bullwhip Effect in Two Parallel Supply Chains with Interacting Price-Sensitive Demands. European Journal of Operational Research 243 (June): 815–25.
Ojha, D., Funda Sahin, Jeff Shockley, and V. Sridharan. 2019. Is There a Performance Tradeoff in Managing Order Fulfillment and the Bullwhip Effect in Supply Chains? The Role of Information Sharing and Information Type. International Journal of Production Economics 208 (January): 529–43.
Vendor Managed Inventory (VMI): Three Steps in Making It Work | SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State UniversitySupply Chain Resource Cooperative | NC State University. n.d. Accessed November 21, 2021. https://scm.ncsu.edu/scm-articles/article/vendor-managed-inventory-vmi-three-steps-in-making-it-work.
Vigtil, Astrid. 2014. A Framework for Modelling of Vendor Managed Inventory. Norwegian University of Science And Technology.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.