Fuzzy Information Sharing Policy Based on Tokens for Bullwhip Effect Management in Supply Chains

The Bullwhip Effect (BWE) is a well-known example of Supply Chain's (SC) inefficiency and refers to demand amplification as moving up to upper echelons in a SC. Information sharing and lead-times in a SC have significant impact on improving SC coordination and cooperation, based on literature review. In this paper, we concentrate on designing a proper ordering policy in order to facilitate coordination in SC and control of BWE. We use an information sharing policy based on Tokens. The strategy is dividing orders into two streams; the first stream is actual value of customer demand, whereas the second one is adjustments needed to manage fluctuation and keep a stable inventory in each echelon of SC. Four echelon SC with unlimited production and inventory capacities is assumed, based on the structure of Beer Game. We apply two reformations on previous related work in literature, the fuzzy lead-time and time variant token ordering policy. Finally, we compare the numerical results and approve the effectiveness of our reformations.