Dynamic Simulation and Analysis of CPFR on the Retail Supply Chain

• Main Authors: Hsiu-Ming Tsao, 曹秀銘
• Other Authors: Liang-Zheng Zhang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/76339184282096375336

碩士 === 實踐大學 === 企業管理學系碩士在職專班 === 101 === In a traditional retail supply chain, a lack of information transparency and ineffective delivery of data can hamper collaboration and cause fluctuations in demand, which in turn leads to insufficient or excessive inventory and overly long lead times. An increase in these fluctuations as one moves upstream in supply chain from the consumer-end to suppliers is a phenomenon is known as the bullwhip effect. Supply chain collaboration has become a mainstream theory in supply chain management, encouraging companies to share information and redesign their operational processes. The effective sharing of information can help to limit the inventory required by suppliers and assist retailers in reducing the rate of stock-outs. In so doing, customer satisfaction can be improved and uncertainty in the supply chain reduced. Collaborative Planning Forecasting ＆ Replenishment (CPFR) promotes the forecasting of sharing demand and immediately conveying information related to fluctuations in demand to suppliers to minimize the inventory buffer and prevent the bullwhip effect. This creates a win-win situation for both retailers and suppliers. This study employed system dynamics to conduct dynamic simulation and an analysis of collaborative inventory management. In order to simulate the effect of CPFR in the retail supply chain, we employed this model to study pre- and post-CPFR analyses, the influence of the bullwhip effect on the supply chain, safe stock levels, the effect of inventory adjustment on the supply chain and how increased retail sales causes inventory variation. Simulation results demonstrate that the use of CPFR could help to effectively alleviate the bullwhip effect and reduce inventory in the supply chain.