Exploring Different Order Decision Behaviors with Bullwhip Effect and Service Level Measures in Supply Chain System

Abstract EN

Since decision makers’ bounded rationality would impact supply chain performance, it is necessary to explore how the individual decisions work in the supply chain.

This paper investigates bullwhip effect variation and service level tendency while the decisions are made by different decision makers.

Based on the existing study results, the paper establishes a system dynamics model of supply chain conforming to modern supply chain characters.

In the model, two adjustment parameters are adopted to describe individual differences in decision makers.

The simulation result demonstrates that the behavioral adjustment with different extent results in different supply chain performance.

The impact of two parameters is very different.

The decision makers should try to avoid the overadjustment to the scarcity of supply from their upstream member.