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Fuzzy Estimations and System Dynamics for Improving Manufacturing Orders in VMI Supply Chains

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Supply Chain Management Under Fuzziness

Part of the book series: Studies in Fuzziness and Soft Computing ((STUDFUZZ,volume 313))

Abstract

In this chapter, we evaluate the behavior of fuzzy estimations of demand for releasing manufacturing orders in a Vendor-Managed Inventory (VMI) supply chain, which is based on a collaborative deal between retailer and manufacturer, and focuses on the interchange of information about demand and inventory levels. The supply chain considered consists of an end consumer, a retailer and a manufacturer. A system dynamics model with fuzzy estimations of demand has been constructed for supply chain simulation. Fuzzy numbers are used to model fuzzy estimations of demand. With a numerical example, we show that the bullwhip effect can be effectively reduced at the level where fuzzy orders exist and that the fill rate reached improves at the retailer level.

This work has been funded by the Universitat Politècnica de València projects: ‘Material Requirement Planning Fourth Generation (MRPIV)’ (Ref. PAID-05-12) and ‘Quantitative Models for the Design of Socially Responsible Supply Chains under Uncertainty Conditions. Application of Solution Strategies based on Hybrid Metaheuristics’ (PAID-06-12).

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Authors and Affiliations

  1. Technical University of Cartagena (UPCT), Murcia, SPAIN

    Francisco Campuzano-Bolarín

  2. Research Centre on Management Production and Engineering (CIGIP), Universitat Politècnica de València, Valencia, Spain

    Josefa Mula & David Peidro

Authors
  1. Francisco Campuzano-Bolarín
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  2. Josefa Mula
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  3. David Peidro
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Corresponding author

Correspondence to Francisco Campuzano-Bolarín .

Editor information

Editors and Affiliations

  1. Department of Industrial Engineering, Istanbul Technical University, İstanbul, Turkey

    Cengiz Kahraman

  2. Department of Industrial Engineering, Istanbul Technical University, İstanbul, Turkey

    Başar Öztayşi

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Campuzano-Bolarín, F., Mula, J., Peidro, D. (2014). Fuzzy Estimations and System Dynamics for Improving Manufacturing Orders in VMI Supply Chains. In: Kahraman, C., Öztayşi, B. (eds) Supply Chain Management Under Fuzziness. Studies in Fuzziness and Soft Computing, vol 313. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-53939-8_10

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  • DOI: https://doi.org/10.1007/978-3-642-53939-8_10

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  • Print ISBN: 978-3-642-53938-1

  • Online ISBN: 978-3-642-53939-8

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