A communication model for reducing the bullwhip effect in closed-loop supply chain

Abstract

Nowadays, most supply chains prefer to exploit closed-loop strategies to reuse their previous products in a reproduction process to reduce their waste and costs. Fluctuations of the demand in a closed-loop supply chain can cause a destructive effect known as the bullwhip effect. This study aimed to investigate the factors that reduce the bullwhip effect in the closed-loop supply chain. For this purpose, first, using a survey on the relevant literature, ten related factors were identified. Then, the opinions of 21 experts were collected, and by applying the ISM technique, the interactions between the ten identified factors were categorized and developed. Finally, the structural equation modeling technique developed the conceptual fit model. The findings indicated that ten identified factors are structured in six general levels. The results also represented a positive and significant relationship among 16 identified relationships in the conceptual model. Based on our findings, “information sharing” is identified as the primary factor of the model. A shorter lead time return factor was also identified at the highest level of the model. The results lead to a comprehensive program to reduce the bullwhip effect in the closed-loop supply chain.

Keywords

• Bullwhip effect
• Closed-loop supply chain
• Interpretive structural modeling
• Structural equation modeling