Reducing the negative effects of sales promotions in supply chains using genetic algorithms
Expert Systems with ApplicationsPublished 9 December 2008
Tina O'Donnell, Paul Humphreys, Ronan McIvor, Liam Maguire
Citations34
SJR quartileQ1
SJR score1.85
SNIP2.55
Generate an AI Snapshot to get a quick, structured summary of this paper.
Study Snapshot
ObjectiveStudy objective
MethodsResearch methodology
PopulationPopulation studied
Sample sizeSample sizes
OutcomesStudy outcomes here
ResultsStudy results comes here
LimitationsResearch study limitations comes here
A concise AI-generated summary of the paper will appear here once you click Generate AI Snapshot.
TL;DR
It is shown how GAs can be used to dampen the impact of the bullwhip effect and can beused to assist supply managers in predicting reorder quantities along the supply chain.
Abstract
This paper considers the detrimental effect of promotions on the supply chain (SC), one of the main causes of the bullwhip effect. A genetic algorithm (GA) is proposed to reduce these negative effects. In order to validate the GA, it is used to determine the optimal ordering policy in an online version of the MIT beer distribution game. Subsequently, the GA is applied in a number of experiments involving deterministic and random demand and lead times combined with sales promotions. It is shown how GAs can be used to dampen the impact of the bullwhip effect and can be used to assist supply managers in predicting reorder quantities along the supply chain.
Keywords
Decision SciencesBusiness, Management and Accounting
Choice Reviews OnlineGenetic algorithms in search, optimization, and machine learning
49,278 Citations1989
This book brings together the computer techniques, mathematical tools, and research results that will enable both students and practitioners to apply genetic algorithms to problems in many fields.
University of Maribor digital library (University of Maribor)Business Dynamics: Systems Thinking and Modeling for a Complex World
9,481 Citations2000John D. Sterman
Handbook of Genetic Algorithms
7,308 Citations1991Lawrence Davis
Marketing management: analysis. planning. implementation and control
6,701 Citations2000Philip Kotler
Management ScienceInformation Distortion in a Supply Chain: The Bullwhip Effect
4,690 Citations1997Hau L. Lee, Vineet Padmanabhan +1 more
Management ScienceModeling Managerial Behavior: Misperceptions of Feedback in a Dynamic Decision Making Experiment
2,513 Citations1989John D. Sterman
An experiment on the generation of macrodynamics from microstructure in a common managerial context and subjects are shown to be insensitive to the feedbacks from their decisions to the environment, implications for behavioral theories of aggregate social and economic dynamics are explored.
The Bullwhip Effect In Supply Chains 1
1,937 Citations1997Hau L. Lee, Vineet Padmanabhan +1 more
Management ScienceSupply Chain Inventory Management and the Value of Shared Information
1,856 Citations2000Gérard P. Cachon, Marshall L. Fisher
In traditional supply chain inventory management, orders are the only information firms exchange, but information technology now allows firms to share demand and inventory data quickly and inexpensively, and it is concluded that implementing information technology to accelerate and smooth the physical flow of goods through a supply chain is significantly more valuable.
Management ScienceQuantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information
1,794 Citations2000Frank Chen, Zvi Drezner +2 more
International series in management science/operations research/International series in operations research & management scienceQuantitative Models for Supply Chain Management
1,232 Citations1999Sridhar Tayur, Ram Ganeshan +1 more
The volume's objective is to provide a self-contained, sophisticated research summary - a snapshot at this point of time - in the area of Quantitative Models for Supply Chain Management.
Management ScienceContracting to Assure Supply: How to Share Demand Forecasts in a Supply Chain
1,051 Citations2001Gérard P. Cachon, Martin A. Lariviere
Contracts that allow the supply chain to share demand forecasts credibly under either compliance regime are studied.
Marketing SciencePrice-Induced Patterns of Competition
675 Citations1989Robert C. Blattberg, Kenneth J. Wisniewski
European Journal of Operational ResearchMeasuring and avoiding the bullwhip effect: A control theoretic approach
674 Citations2003Jeroen Dejonckheere, Stephen Michael Disney +2 more
It is proved that the bullwhip effect is guaranteed in the order-up-to model irrespective of the forecasting method used, and a general decision rule is introduced that avoids variance amplification and succeeds in generating smooth ordering patterns, even when demand has to be forecasted.
Marketing ScienceHow Promotions Work
647 Citations1995Robert C. Blattberg, Richard A. Briesch +1 more
International Journal of Production EconomicsThe effect of vendor managed inventory (VMI) dynamics on the Bullwhip Effect in supply chains
526 Citations2003Stephen Michael Disney, D.R. Towill
VMI is shown to be significantly better at responding to volatile changes in demand such as those due to discounted ordering or price variations, and inventory recovery as measured by the integral of time×absolute error performance metric is substantially improved via VMI.
Marketing ScienceManaging Advertising and Promotion for Long-Run Profitability
409 Citations1999Kamel Jedidi, Carl F. Mela +1 more
Journal of Marketing ResearchThe Long-Term Impact of Promotions on Consumer Stockpiling Behavior
260 Citations1998Carl F. Mela, Kamel Jedidi +1 more
Decision Support SystemsComputers play the beer game: can artificial agents manage supply chains?
243 Citations2002Steven O. Kimbrough, Di Wu +1 more
Marketing LettersSales promotion: The long and the short of it
207 Citations1989Robert C. Blattberg, Scott A. Neslin
International Journal of Production ResearchPerformance analysis of conjoined supply chains
191 Citations2001Benita M. Beamon, V. C. P. Chen
Management ScienceTesting Behavioral Simulation Models by Direct Experiment
170 Citations1987John D. Sterman
This paper shows how direct experiment can be used to confirm or disconfirm the decision rules in simulation models, and demonstrates the promise of experimental methods as a complementary approach to econometrics in testing simulation models.
International series in management science/operations research/International series in operations research & management scienceThe Bullwhip Effect: Managerial Insights on the Impact of Forecasting and Information on Variability in a Supply Chain
131 Citations1999Frank Chen, Zvi Drezner +2 more
Beyond Belief: Randomness, Prediction and Explanation in Science
113 Citations1990John L. Casti, Anders Karlqvist
Advances in fuzzy systemsAutomatic Generation of Neural Network Architecture Using Evolutionary Computation
111 Citations1997E. Vonk, Lakhmi C. Jain +1 more
International Journal of Production ResearchMinimizing the bullwhip effect in a supply chain using genetic algorithms
90 Citations2006Tina O'Donnell, Liam Maguire +2 more
A genetic algorithm (GA) is employed to reduce the bullwhip effect and cost in the MIT beer distribution game and it is shown that the GA can reduce theBullWhip effect when facing deterministic and random customer demand combined with deterministicand random lead times.
IEEE/ASME Transactions on MechatronicsCollaboration and information sharing in global contract manufacturing networks
71 Citations2001R. Gaonkar, N. Viswanadham
A linear program based optimization model is developed for an OEM operating an Internet-based private exchange as a channel master with its contract manufacturers and their suppliers participating by sharing information and shows that information sharing results in cost and inventory reduction.
Repository of the Academy's Library (Library of the Hungarian Academy of Sciences)Soft computing and the bullwhip effect
41 Citations1999Christer Carlsson, Robert C. Fuller
It is shown that if the members of the supply chain share information, and agree on better and better fuzzy estimates (as time advances) on future sales for the upcoming period, then the bullwhip effect can be essentially reduced.