Bullwhip behaviour in the order-up to policy with ARIMA demand

This paper analyses the bullwhip effect produced by the Order-Up-To (OUT) policy for ARIMA demand processes. Areas in the parametrical space are identified where a bullwhip effect increases or decreases as function of the lead time. In remaining areas the bullwhip effect might be increasing, decreasing or fluctuating, depending upon the parameter values of the demand process.

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