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Considering a multi-echelon system, the bullwhip effect is recognized as a significant factor with regards to the inventory management. This paper focuses on the effect of stochastic dependent lead time on the bullwhip effect. Simulation based approach is used to quantify the bullwhip effect with different demand and lead time distributions. The experiment results show that the dependent lead time has much effect on the 2nd echelon (from the downstream to the upstream) and bullwhip effect decrease significantly if the variance of this echelon decreases.

Quantifying the Bullwhip Effect of Multi-echelon System with Stochastic Dependent Lead Time