A Fuzzy Hybrid Multi-Agent Framework for Reducing Bullwhip Effect in Supply Chain

Abstract

Supply chain is composed of suppliers, manufactures, distribution centre, vendors, and supplier. In supply chain management, Bullwhip is a problem that negatively influences inventory, costs and reliability. With growing complexity of supply chains, it becomes critical issue. As we move upwards in supply chain, there is the amplification in the fluctuation of order which is termed as Bullwhip effect. The main causes of the bullwhip effect are Demand forecasting and order policy. This paper proposed the conceptual framework of fuzzy hybrid multi-agent approach for the reduction of bullwhip by taking demand forecasting and order policy into account in the supply chain. Rule generator agent generates the rule for demand prediction and order policy and store rules in the rule base. Data collector agent sends the demand and order data to rule generator agent. We focus on the information sharing as an important requirement for the effective functioning of the agents. By coordinated functioning of agent’s results into information sharing, thereby reducing the bullwhip effect.