Removing bullwhip from Lexmark's toner operations

Stephen Michael Disney · L. Hoshiko · L. Polley · C. Weigel

14 citations0/0 files storedORCA Online Research @Cardiff (Cardiff University)

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Supply Chain and Inventory Management Quality and Supply Management Forecasting Techniques and Applications

Abstract

Lexmark’s existing planning system, that controls the production of printer toner, created a bullwhip effect of 5.4:1. Inventory variability, measured as a ratio to the demand variance, was 27:3. We describe a project where, since 2011, we have been able to reduce bullwhip to 0.94:1 and inventory variability to 2.15:1.

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1998Toyota production system: beyond large-scale production 2003Measuring and avoiding the bullwhip effect: A control theoretic approach 1920Van de Velde 1985Forecasting Trends in Time Series 2003On the bullwhip and inventory variance produced by an ordering policy 2008On Replenishment Rules, Forecasting, and the Bullwhip Effect in Supply Chains 2004Variance amplification and the golden ratio in production and inventory control 2012Stability analysis of constrained inventory systems with transportation delay

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