Applying Goldratt's theory of constraints to reduce the Bullwhip Effect through agent-based modeling

Costas, José, Ponte Blanco, Borja, de la Fuente, David, Pino, Raúl and Puche, Julio 2015. Applying Goldratt's theory of constraints to reduce the Bullwhip Effect through agent-based modeling. Expert Systems with Applications 42 (4) , pp. 2049-2060. 10.1016/j.eswa.2014.10.022

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Abstract

In the current environment, Supply Chain Management (SCM) is a major concern for businesses. The Bullwhip Effect is a proven cause of significant inefficiencies in SCM. This paper applies Goldratt’s Theory of Constraints (TOC) to reduce it. KAOS methodology has been used to devise the conceptual model for a multi-agent system, which is used to experiment with the well known ‘Beer Game’ supply chain exercise. Our work brings evidence that TOC, with its bottleneck management strategy through the Drum-Buffer-Rope (DBR) methodology, induces significant improvements. Opposed to traditional management policies, linked to the mass production paradigm, TOC systemic approach generates large operational and financial advantages for each node in the supply chain, without any undesirable collateral effect.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Publisher:	Elsevier
ISSN:	0957-4174
Date of First Compliant Deposit:	7 February 2017
Date of Acceptance:	13 October 2014
Last Modified:	11 Oct 2023 20:53
URI:	https://orca.cardiff.ac.uk/id/eprint/98148

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