Multiagent Methodology to Reduce the Bullwhip Effect in a Supply Chain

Abstract

There are several circumstances which, in recent decades, have granted the supply chain management a strategic role in the search for competitive advantage. One of the goals is, undoubtedly, the reduction of Bullwhip Effect, which is generated by the amplification of the variability of orders along the chain, from the customer to the factory. This paper applies multiagent methodology for reducing Bullwhip Effect. To do this, it considers the supply chain as a global multiagent system, formed in turn by four multiagent subsystems. Each one of them represents one of the four levels of the traditional linear supply chain (Shop Retailer, Retailer, Wholesaler and Factory), and it coordinates various intelligent agents with different objectives. Thus, each level has its own capacity of decision and it seeks to optimize the supply chain management. The problem is analyzed both from a non collaborative approach, where each level seeks the optimal forecasting methodology independently of the rest, and from a collaborative approach, where each level negotiates with the rest looking for the best solution for the whole supply chain.