Simulation for analyzing effect of Silver Meal lot sizing rules in bullwhip effect

Bullwhip effect is a variability of demand distorting phenomenon in supply chain. The difference in variability of demand is caused by varied methods in interpreting the data. One of the causes is the lot sizing rules which are used by the suppliers. This research analyzes the effect of lot sizing rules on bullwhip effect on determine the order quantity with Silver Meal method. The supply chain model consists of two suppliers who are retailer and wholesaler. The bullwhip effect can be seen on the variability of wholesaler�s demand. This paper will also show the impact of higher variability and the impact of holding cost. The result showed that Silver Meal method will produced higher variability on demand wholesalers. Using Silver meal on higher variability demand will decrease the bullwhip effect by only 1%. By reducing the holding cost it will be increasing the bullwhip effect however the total cost will be lower