Analysis the value of Bullwhip Effect in the Apple Chips Supply Chain with the Vendor Managed Inventory (VMI) Method
Siti Asmaul Mustaniroh (a*), Abd. Jabbar Tsany Ramadhan (a), Wike Agustin Prima Dania (a)

Department of Agroindustrial Technology, Universitas Brawijaya, Malang, East Java, Indonesia
Building F, 5h floor, Faculty of Agricultural Technology, Universitas Brawijaya, Veteran St. Malang, East Java, Indonesia 65145
*Corresponding Author: asmaul_m[at]ub.ac.id

Abstract

SMEs Ramayana Agro Mandiri is a producer of apple chips in Batu City have the problem are the increase in production units due to distorted information, the use of naive method, and the unmeasured inventory control of apple chip products. These problems can cause the phenomenon of bullwhip effect (BE). Based inefficiencies in the supply chain network, inventory shortages and inaccurate forecasting, need this study with aims to analyze the value of bullwhip effect and determine alternative solutions for improving the value of BE using Vendor Managed Inventory (VMI) method. The VMI method can be used to reduce the value of BE by determining Economic Order Quantity deterministic and forecasting demand (time series). The results show identified 6 out of 8 product variants in 4 SMEs experiencing of BE. The bullwhip effect parameter value is 1.00893. Products experiencing the BE have shown a value below the parameter. The BE value after the improvement on SMEs Inara 1st quality was 0.438 and 2nd quality was 0.371. For SMEs Andini, 1st quality was 0.548 and 2nd quality was 0.449. In SMEs Ramayana Agro Mandiri 1st quality was 0.506 and 2nd quality was 0.500.

Keywords: Bullwhip Effect, Apple Chips, Supply Chain, Vendor Managed Inventory

Topic: Agro-industrial production system management and regulation